Frank, a Single Person Age 52, Sold His Home This

Multiple Choice

Frank, a single person age 52, sold his home this year. He had lived in the house for 10 years. He signed a contract on March 4 to sell his home and closed the sale on May 3.
$$\begin{array} { | l | r | } \hline \text { Sales price } & \$ 202,000 \\\hline \text { Selling expenses paid by Frank } & 12,000 \\\hline \text { Replaced a broken window on March 2 } & 200 \\\hline \text { Basis of old home before repairs and improvements } & 150,000 \\\hline\end{array}$$ Based on these facts, what is the amount of his recognized gain?

A) $0
B) $39,800
C) $40,000
D) $52,000