Jace purchased a home for $225,000. he later added another room for $25,300. he sold the home five years later for $305,000 and paid a sales commission of $12,000. jace's gain on the sale is:
a. $42,700
b. $54,700
c. $68,000
d. $80,000

A. $42,700

Explanation:

In order to calculate the gain on sale we will start from the selling price that Jace got when he sold the home. He sold the house for 305,000 in order to calculate the gain we will subtract all the costs associated with the house. His first cost was the purchasing of the house of 225,000, his second costs was of the addition of another room for 25,300 and his final cost was of 12,000 sales commission.

Gain on sale = 305,000-(225,000+25,300+12,000)=42,700

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.