Real Estate Math
A Tennessee investor purchased a property for $185,000 and sold it 3 years later for $230,000 after paying $12,000 in improvements. What is the total gain?
A$45,000
B$33,000✓ Correct
C$57,000
D$55,000
Explanation
Total cost basis = $185,000 + $12,000 = $197,000. Gain = $230,000 − $197,000 = $33,000. Using the values given ($185,000, $230,000), apply the appropriate formula.. The correct answer is $33,000.. This is a common calculation on the Tennessee real estate exam.
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