Mitchell and Debbie Dixon,a Married Couple,sell Their Personal Residence to Sophie.Sophie

Multiple Choice

Mitchell and Debbie Dixon,a married couple,sell their personal residence to Sophie.Sophie pays $225,000 and assumes their $70,000 mortgage.To make the sale,the Dixons pay $4,000 in commissions and $1,000 in legal costs.The couple has owned and lived in the house for seven years and their tax basis is $125,000.What is the amount of gain recognized on the sale?

A) $0
B) $100,000
C) $165,000
D) $170,000