Answer:
$163,000
Explanation:
New adjusted basis for Carol's property will be
the Beginning basis plus capital gain minus depreciation
=$312,000 + 34,000 - $ 80,000
=$346,000 -$80,000
=$266,000
The net amount realized from the sale is
Selling cost minus closing costs
= $450,000 -$21,000
=$429,000
The capital gain will be the amount received - new adjusted basis
=$429,000 - 266,000
=$163,000
