Alicia Buys a Beach House for $425,000 Which She Uses

Multiple Choice

Alicia buys a beach house for $425,000 which she uses as her personal vacation home.She builds an additional room on the house for $45,000.She sells the property for $510,000 and pays $30,000 in commissions and $4,000 in legal fees in connection with the sale.What is the recognized gain or loss on the sale of the house?

A) $0.
B) $6,000.
C) $30,000.
D) $40,000.
E) None of the above.