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Linda Larue has arthritis. Her chiropractor advised her that she needed to swim daily to alleviate...

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Accounting

Linda Larue has arthritis. Her chiropractor advised her that sheneeded to swim daily to alleviate her pain and other symptoms.Consequently, Linda and her husband, Philo, purchased for $400,000a new home that had a swimming pool, after selling their old homefor $325,000. If the Larues had constructed a pool at their formerresidence, it would have cost $75,000 to build, and it would haveincreased the value of their home by $50,000.

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Facts:

Issues:

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Authorities( only use the IRS code/ Reg):

Analysis and Summary:

Action to be taken:

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