Fran Was Transferred from Phoenix to Atlanta

Multiple Choice

Fran was transferred from Phoenix to Atlanta.She sold her Phoenix residence (adjusted basis of $180,000) for a realized loss of $40,000 and purchased a new residence in Atlanta for $225,000.What is Fran's recognized gain or loss on the sale of the Phoenix residence and her basis for the residence in Atlanta?

A) $0 and $220,000.
B) $0 and $225,000.
C) ($40,000) and $180,000.
D) ($40,000) and $225,000.
E) None of the above.