During 2018, Ted and Judy, a Married Couple, Decided to Sell

Multiple Choice

During 2018, Ted and Judy, a married couple, decided to sell their residence, which had a basis of $300,000.They had owned and occupied the residence for 20 years.To make it more attractive to prospective buyers, they had the outside painted in April at a cost of $6,000 and paid for the work immediately.They sold the house in May for $880,000.Broker's commissions and other selling expenses amounted to $53,000.Since they both are age 68, they decide to rent an apartment.They purchase an annuity with the net proceeds from the sale.What is the recognized gain?

A) $0
B) $17,000
C) $27,000
D) $527,000