Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2013, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2013, he and the purchaser signed a contract to sell for $363,000. The sale took place on September 7, 2013. The closing statement showed the following disbursements:
| Real estate agent's commission |
$21,780 |
| Appraisal fee |
600 |
| Exterminator's certificate |
300 |
| Recording fees |
800 |
| Mortgage to First Bank |
305,000 |
| Cash to seller |
34,520 |
|
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2013, Wesley purchases another residence for $325,000. If an amount is zero, enter "0".
a. Wesley's recognized gain on the sale is $ .
b. Wesley's adjusted basis for the new residence is $
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $ , and his adjusted basis for the new residence is $ .