Section B (2 Mark)

Section B (2 Mark)

Lucy purchased a rental house a few years ago for $100,000. Total depreciation to date is $35,000. In the current year, she sells the house for $155,000 and pays $10,000 selling expenses. Calculate Lucy’s gain on the sale.
A . $80,000
B . $55,000
C . $45,000
D . $42,000

Answer: A