Real Estate Math
A Louisiana property owner's adjusted basis at the time of sale is $220,000 and they sell for $295,000 net of all selling expenses. What is the realized gain?
A$55,000
B$75,000✓ Correct
C$85,000
D$65,000
Explanation
Realized gain = Net sale price − Adjusted basis = $295,000 − $220,000 = $75,000. Using the values given ($220,000, $295,000), apply the appropriate formula.. The correct answer is $75,000.. This is a common calculation on the Louisiana real estate exam.
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