Charlotte Purchases a Residence for $105,000 on April 13,2004

Multiple Choice

Charlotte purchases a residence for $105,000 on April 13,2004.On July 1,2015,she marries Howard and they use Charlotte's house as their principal residence.If they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.Which of the following statements is/are correct concerning the sale of their personal residence?
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.