This Year, Fred and Wilma, Married Filing Jointly, Sold Their

Multiple Choice

This year, Fred and Wilma, married filing jointly, sold their home (sales price $750,000; cost $200,000) . All closing costs were paid by the buyer. Fred and Wilma owned and lived in their home for 20 years. How much of the gain is included in gross income?

A) $550,000
B) $300,000
C) $250,000
D) $50,000
E) None of the choices are correct.