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Problem - Assume that Lonzo owned the property as rental property beginning in 1997. During the time the house was a rental property, Lonzo had $16,000 in depreciation and completed the same work/purchases listed in the previous question. Calculate Lonzo's gain on the sale of the house.
a) $268,000
b) $271,750
c) $250,000
d) $255,750
Interest cost, $6; expected return on assets, $4; amortization of net loss, $2; amortization of prior service cost, $3 million.
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