Becky Bought a Home with Her Husband,Ken,in 2001 for $125,000

Multiple Choice

Becky bought a home with her husband,Ken,in 2001 for $125,000.They were divorced in 2010 and Becky became sole owner of the home under the divorce decree.On January 5,2014,Becky married Michael.Michael and Becky have been living in the house since their marriage but they are planning now to move.If Michael and Becky sell their home on December 15,2015 for $500,000,how much taxable gain must they report on their 2015 joint tax return?

A) zero
B) $125,000
C) $250,000
D) $375,000