I:12-40 Sale of a Principal Residence. Marc, age 45, sells his personal residence on May 15, 2022, for $180,000. He pays $8,000 in selling expenses and $900 in repair expenses to help sell the residence. He has lived in the residence since 1995, when he purchased it for $55,000.

In 2003, he paid $6,000 to install central air conditioning. If Marc purchases a new principal residence in December of the current year for $162,000, what is the realized gain, recognized gain, and the basis for the new residence?