Assume Instead That in the Preceding Problem, as Part of the Divorce

Multiple Choice

Assume instead that in the preceding problem, as part of the divorce agreement, Gary retained ownership of the residence but the use of the home was granted to Gerda as long as Gary owns the residence. If Gary sells the residence on October 18, 2012 for $350,000, how much can Gary exclude?

A) $350,000
B) $250,000
C) $225,000
D) $-0-
E) None of the above