Use the Following Data to Determine the Sales Price of Toby's

Essay

Use the following data to determine the sales price of Toby's principal residence and the realized gain. He is not married. The sale of the old residence qualifies for the § 121 exclusion. $$\begin{array} { l r } \text { Selling expenses } & \$ 45,000 \\\text { Recognized gain } & 180,000 \\\text { Cost of new residence } & 760,000 \\\text { Adjusted basis of old residence } & 225,000 \\\S 121 \text { exclusion } & 250,000\end{array}$$