Mitchell and Debbie,both 55 Years Old and Married,sell Their Personal

Multiple Choice

Mitchell and Debbie,both 55 years old and married,sell their personal residence to Sophie.Sophie pays $225,000 and assumes their $70,000 mortgage.To make the sale they pay $4,000 in commissions and $1,000 in legal costs.They have owned and lived in the house for seven years and their tax basis is $125,000.What is the amount of gain recognized on the sale?

A) $0
B) $100,000
C) $165,000
D) $170,000