During 2014,Ted and Judy,a Married Couple,decided to Sell Their Residence,which

Multiple Choice

During 2014,Ted and Judy,a married couple,decided to sell their residence,which had a basis of $300,000.They had owned and occupied the residence for 20 years.To make it more attractive to prospective buyers,they had the outside painted in April at a cost of $6,000 and paid for the work immediately.They sold the house in May for $880,000.Broker's commissions and other selling expenses amounted to $53,000.Since they both are age 68,they decide to rent an apartment.They purchase an annuity with the net proceeds from the sale.What is the recognized gain?

A) $0
B) $17,000
C) $27,000
D) $527,000
E) None of these