Real Estate Math
A North Dakota investor sells a property for $550,000 and has a $400,000 adjusted basis. What is the capital gain?
A$100,000
B$150,000✓ Correct
C$160,000
D$175,000
Explanation
Capital gain = Sale price − Adjusted basis = $550,000 − $400,000 = $150,000. Using the values given ($550,000, $400,000), apply the appropriate formula.. The correct answer is $150,000.. This is a common calculation on the North Dakota real estate exam.
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