Assume the original facts, except that stephanie moves in with steve on march 1 of year 3 and the couple is married on march 1 of year 4. under state law, the couple jointly owns steve’s home beginning on the date they are married. on december 1 of year 3, stephanie sells her home that she lived in before she moved in with steve. she excludes the entire $150,000 gain on the sale on her individual year 3 tax return. what amount of gain must the couple recognize on the sale in june of year 5?

On june 1, 2017, blossom company was started with an initial investment in the company of $22,360 cash. here are the assets, liabilities, and common stock of the company at june 30, 2017, and the revenues and expenses for the month of june, its first month of operations: cash $4,960 notes payable $12,720 accounts receivable 4,340 accounts payable 840 service revenue 7,860 supplies expense 1,100 supplies 2,300 maintenance and repairs expense 700 advertising expense 400 utilities expense 200 equipment 26,360 salaries and wages expense 1,760 common stock 22,360 in june, the company issued no additional stock but paid dividends of $1,660. prepare an income statement for the month of june.