Real Estate Math
A NJ seller purchased for $190,000, made $30,000 in improvements, and sold for $285,000. What is the gain on the sale before tax considerations?
A$65,000✓ Correct
B$95,000
C$75,000
D$55,000
Explanation
Adjusted basis = $190,000 + $30,000 = $220,000. Gain = $285,000 – $220,000 = $65,000. Using the values given ($190,000,, $30,000), apply the appropriate formula.. The correct answer is $65,000.. This is a common calculation on the New Jersey real estate exam.
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