Real Estate Math
A Texas house was purchased for $165,000 and the owner made $22,000 in improvements. The owner later sells it for $210,000. What is the gain?
A$23,000✓ Correct
B$45,000
C$67,000
D$19,000
Explanation
Adjusted cost basis = $165,000 + $22,000 = $187,000. Gain = $210,000 − $187,000 = $23,000.
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