Donald and Candice Sell Their Home for $695,000,incurring Selling Expenses

Multiple Choice

Donald and Candice sell their home for $695,000,incurring selling expenses of $30,000.They purchased the residence for $125,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
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Realized Recognized

A) $665,000 $20,000
B) $520,000 $-0-
C) $520,000 $20,000
D) $540,000 $40,000
E) $520,000 $270,000