Bob and Elizabeth,both 55 Years Old and Married,sell Their Personal

Multiple Choice

Bob and Elizabeth,both 55 years old and married,sell their personal residence to Wolfgang.Wolfgang pays $660,000 and assumes their $90,000 mortgage.To make the sale they pay $20,000 in commissions and $10,000 in legal costs.They have owned and lived in the house for seven years and their tax basis is $200,000.What is the amount of gain recognized on the sale?

A) $0
B) $20,000
C) $50,000
D) $520,000