Ethan (Single)purchased His Home on July 1, 2010

Multiple Choice

Ethan (single) purchased his home on July 1, 2010. He lived in the home as his principal residence until July 1, 2017, when he moved out of the home, and rented it out until July 1, 2019, when he moved back into the home. On July 1, 2020, he sold the home and realized a $223,000 gain. What amount of the gain is Ethan allowed to exclude from his gross income?

A) $0.
B) $178,400.
C) $213,000.
D) $223,000.