Janice bought her house in 2010 for $395,000. Since then, she has deducted $70,000 in depreciation associated with her home office and has spent $45,000 replacing all the old pipes and plumbing. She sells the house on July 1, 2019. Her realtor charged $34,700 in commissions. Prior to listing the house with the realtor, she spent $300 advertising in the local newspaper. Don buys the house for $500,000 in cash and assumes her mortgage of $194,000. What is Janice’s adjusted basis at the date of the sale and the amount realized?
A. $370,000 adjusted basis; $661,400 amount realized.
B. $370,000 adjusted basis; $659,000 amount realized.
C. $370,000 adjusted basis; $665,200 amount realized.
D. $325,000 adjusted basis; $663,200 amount realized.
E. $325,000 adjusted basis; $694,000 amount realized.
Answer: B
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