Paul and Paula Parker Purchased a Home in Washington, D

Essay

Paul and Paula Parker purchased a home in Washington, D.C. for $340,000 on November 4, 2011. Paul obtained a job in Roanoke, Virginia, and on December 4, 2012, the Parkers sold their home in Washington for $570,000.
(a.) How much gain can the Parkers exclude and how much is recognized?
(b.) Assume that the Parkers instead sold their home on December 4, 2012, for $760,000.