During 2014, Howard and Mabel, a Married Couple, Decided to Sell

Multiple Choice

During 2014, Howard and Mabel, a married couple, decided to sell their residence. The residence has a basis of $162,000 and has been owned and occupied by them for 11 years. The house was sold in May for $395,000 with broker's commissions and other selling expenses being $24,000. They purchased a new residence in June for $400,000. What is the adjusted basis of the new residence?

A) $0.
B) $141,000.
C) $162,000.
D) $191,000.
E) None of the above.