Question

Marjorie purchased her home for $235,000 and put $26,000 of capital improvements into the house before she sold it eight years later. She paid a broker's commission and closing fees of $22,000 from the proceeds of the sale, which were $357,000. What was Marjorie's capital gain?

Answer 1

Marjorie's capital gain is $96,000.

Step-by-step explanation:

Marjorie's capital gain can be calculated by subtracting the cost basis from the selling price. The cost basis is the original purchase price plus the capital improvements. In this case, the cost basis is $235,000 + $26,000 = $261,000.

Therefore, Marjorie's capital gain is $357,000 - $261,000 = $96,000.