Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
$\begin{array}{cc}
\text { Realized } & \text { Recognized } \
a.\$ 365,000 & \$-0- \
b.\$ 365,000 & \$ 115,000 \
c.\$ 385,000 & \$ 135,000 \
d.\$ 385,000 & \$-0- \
e.\$ 390,000 & \$-0-
\end{array}$

Question

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The Answer of Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
$\begin{array}{cc}
\text { Realized } & \text { Recognized } \
a.\$ 365,000 & \$-0- \
b.\$ 365,000 & \$ 115,000 \
c.\$ 385,000 & \$ 135,000 \
d.\$ 385,000 & \$-0- \
e.\$ 390,000 & \$-0-
\end{array}$

Tony and Faith Sell Their Home for $495,000,incurring Selling Expenses