Question

Mary Beth purchased her primary residence for $280,000.00. As part of the closing procedure, she paid $2,900 in a loan origination fee, $750 to a lawyer to review the purchase contract and other closing papers, $150 for a property survey, and $1,200 for title insurance. She also gave the real estate agent a $100 gift certificate in appreciation for his hard work. What is Mary Beth's basis residence?
a. $280,000.
b. $281,350.
c. $282,100.
d. $282,900

Answer 1

Answer:

b. $281,350

Explanation:

Calculation for What is Mary Beth's basis residence

Cost price $280,000

Add Title Insurance $1,200

Add Property Survery $150

Mary Beth's basis residence $281,350

($280,000+$1,200+$150)

Therefore Mary Beth's basis residence will be $281,350