Charlotte Purchases a Residence for $105,000 on April 13,2007

Multiple Choice

Charlotte purchases a residence for $105,000 on April 13,2007.On July 1,2015,she marries Howard and they use Charlotte's house as their principal residence.On May 12,2017,they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.What is their realized and recognized gain?
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Realized Recognized

A) $ 265,000 $-0-
B) $ 265,000 $15,000
C) $ 285,000 $65,000
D) $ 265,000 $45,000
E) $ 285,000 $-0-