During 2016,Zeke and Alice,a Married Couple,decided to Sell Their Residence,which

Multiple Choice

During 2016,Zeke and Alice,a married couple,decided to sell their residence,which had a basis of $200,000.They had owned and occupied the residence for 20 years.To make it more attractive to prospective buyers,they had the inside painted in April at a cost of $5,000 and paid for the work immediately.They sold the house in May for $800,000.Broker's commissions and other selling expenses amounted to $50,000.They purchased a new residence in July for $400,000.What is the recognized gain and the adjusted basis of the new residence?

A) $45,000 and $400,000.
B) $50,000 and $400,000.
C) $100,000 and $600,000.
D) $550,000 and $800,000.
E) None of the above.