Which must pay tax due to the sale of the property

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Problem 1: In 1996, Passan purchased a cottage for $70,000. Over the years, Passan has lived in the cottage for approximately four weeks each summer but, only on alternate weekends during the balance of the year. He also owned a house in the city before moving into a rented apartment. When he disposed of the house, he designated it as his principal residence from 2004 to 2011 (inclusive). If Passan sells his cottage in 2017 for $365,000, what is the MINIMUM amount on which he must pay tax due to the sale of the property?

a) $ 46,932
b) $ 93,864
c) $201,136
d) $295,000

Reference no: EM132792244

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