Tony and Faith Sell Their Home for $495,000,incurring Selling Expenses

Short Answer

Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 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?
$\begin{array}{cc}\text { Realized } & \text { Recognized } \\a.\$ 365,000 & \$-0- \\b.\$ 365,000 & \$ 115,000 \\c.\$ 385,000 & \$ 135,000 \\d.\$ 385,000 & \$-0- \\e.\$ 390,000 & \$-0-\end{array}$