Jarred sells for $300,000 rental property he purchased in 2006 for $160,000. In 2008 he replaced the entire roof (not a repair) for $12,000 and also paid $2,000 for repairs to the inside of the rental. Thus far, Jared deducted $18,440 for depreciation. What is Jarred’s realized and recognized gain or loss on this sale?

1. $58,440 Gain

2. $9,560 Gain

3. $70,440 Gain

4. $46,440 Gain

Answer rating: 100% (QA)

property 2006 Purchase 1600... View the full answer