I:12-46 Unqualified Use. Sherron, who is single, purchased a house to use as rental property on April 1, 2008, for $300,000. He moved into the house on June 1, 2021, and used it as a personal residence until August 1, 2022, 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 sold on August 1, 2023, for $500,000