Weston Sells His Residence to Joanne on October 15, 2014

Multiple Choice

Weston sells his residence to Joanne on October 15, 2014. Indicate which of the following statements is correctly associated with § 121 (exclusion of gain on sale of principal residence) .

A) Selling expenses decrease the seller's amount realized and increase the buyer's adjusted basis.
B) Repair expenses of the seller decrease the seller's amount realized and have no effect on the buyer's adjusted basis.
C) Capital expenditures made by the seller prior to the sale increase the seller's adjusted basis and have no effect on the buyer's adjusted basis.
D) Only a. and c.
E) a., b., and c.