Elaine Constantine, who is single, sells her current personal residence with adjustable basis of $170,000 for $455,000. She has owned and lived in the house for over 25 years. Her selling expenses are $25,000.

(a): What is Elaine's realized and recognized gain?

(b): Explain the meaning of the terms:

1. Adjusted basis

2. Realized gain

3. Amount realized or gain