71. A developer builds a home for $200,000. The materials and labor were $175,000. An appraiser valued the home at $235,000, and it eventually sold for $240,000. Which of these is the price?
Answer: C
$240,000
The price of the home is $240,000, which is the amount it was sold for. This figure represents the final transaction price agreed upon by the buyer and seller.
A) $175,000
Option A is incorrect because $175,000 represents the total costs of materials and labor incurred by the developer, not the selling price of the home. It does not reflect the market value or the final sale amount.
B) $235,000
Option B is also incorrect as $235,000 is the appraised value of the home, which indicates its estimated worth but does not represent the actual price at which it was sold.
C) $240,000
Option C is correct because $240,000 is the final sale price of the home. This amount is what the buyer paid to acquire the property, making it the definitive price in this context.
D) $200,000
Option D is incorrect since $200,000 is the initial construction cost of the home. While it reflects the developer's investment, it does not indicate the selling price.
Conclusion
The definitive price of the home is $240,000, which is the amount it sold for, reflecting the market transaction. Other options fail to represent the selling price, as they either indicate costs of construction or estimated values that do not equate to the actual price paid by the buyer.