What is Jace's gain on the sale of his home if he sold it for $305,000 after adding a room for $25,300?

To determine Jace's gain on the sale of his home, we first need to establish the total cost basis of the home, which includes the purchase price plus any improvements made.

If we consider that Jace sold his home for $305,000, we need to subtract the cost basis from this selling price to find the gain. In this scenario, the only improvement mentioned is the addition of a room, which cost $25,300.

To calculate the gain, we need to know Jace's original purchase price for the home. However, that information is not provided in the question. Assuming that we find the initial purchase price to be $262,300, which when added to the improvement cost of $25,300 totals $287,600, we can then calculate the gain.

The computation would look like this:

1. Selling Price: $305,000

2. Cost Basis: $287,600

3. Gain: Selling Price - Cost Basis = $305,000 - $287,600 = $17,400.

It appears that the calculated gain doesn't align with any of the multiple-choice answers directly. If additional context was provided—such as the initial purchase price being different—then the correct answer could be