Kerri and John are married. On May 12, 2020, they sell their home for $190,000 and purchase another residence costing $225,000. What are Kerri and John’s realized gain and recognized gain in each of the following cases?

a. They purchased the residence for $85,000 on February 8, 2018.

b. Kerri purchased the residence for $85,000 on August 15, 2017. They are married on June 13, 2018, and use Kerri’s house as their principal residence.

c. Assume the same facts as in part b, except that they sell the house for $390,000.