Clem and Chloe, a Married Couple, Sell Their Principal Residence

Multiple Choice

Clem and Chloe, a married couple, sell their principal residence that they have owned and occupied for the past twenty years.The adjusted basis for the residence is $324,000.They incurred selling expenses of $30,000.How much gain must they recognize if they sell the residence for $904,000?

A) $40,000
B) $50,000
C) $290,000
D) $300,000