I:12-56 For the last nine years, Mr. and Mrs. Orchard live in a residence located on eight acres.

In January of the current year they sell the home and two acres of land. The purchaser of the residence does not wish to own the entire eight acres of land. In December they sell the remaining six acres of land to another individual for $60,000. The house and the land have never been used by the Orchards in a trade or business or held for investment. The realized gains resulting from the two sales are computed as follows:

House and Two Acres January Sales Eight Acres December Sale Selling price $140,000 $ 60,000 Minus: Selling expenses (8,000) (3,000)

Amount realized $132,000 $ 57,000 Minus: Basis (80,000) (18,000)

Realized gain $ 52,000 $ 39,000 As a result of the sales described above, what is the amount of realized gain that must be recognized during the current year?

A partial list of research sources is:

• Reg. Sec. 1.121-1(b)