Sherron, who is single, purchased a house to use as rental property on April 1, 2007, for $300,000. He moved into the house on June 1, 2012, and used it as a personal residence until August 1, 2013, when he sells the house for $500,000. Depreciation allowed while property was used as rental property amounts to $25,000. Determine his:
a. Realized gain on the sale
b. Recognized gain on the sale
c. Recognized gain on the sale if the house is not sold until August 1, 2014, for $500,000