At the beginning of 2016, Donna Harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 000-00-1111. She sold her house in California on August 10 for $500,000. She paid a $14,000 sales commission. The house was acquired on March 23, 1989, for $140,000.

The cost of transporting her household goods and personal effects from California to Orlando amounted to $2,350. To travel from California to Florida, she paid travel and lodging costs of $370 and $100 for meals.

On July 15, she purchased a house for $270,000 on 1225 Minnie Lane in Orlando. To purchase the house, she incurred a 20-year mortgage for $170,000. To obtain the loan, she paid points of $3,400. The $3,600 of property taxes for the house in Orlando were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year she paid $3,600 for property taxes.

Other information related to her return:

a. Determine the amount of recognized gain on the sale of the residence.

b. Prepare Forms 3903, 8960, and 1040, including Schedules A, B, and D.

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Salary from Farah Movie, Inc. Salary from Ocala Production, Ine. Federal income taxes withheld by Farah Federal income taxes withheld by Ocala $30,000 70,000 6,000 22,000 2,295 5,355 1,800 10,000 FICA taxes withheld by Ocala Interest income from Sun National Bank Dividend income (qualifying dividends) Interest paid for mortgage: Home in California Home in Orlando Property taxes paid in California Sales taxes paid in California and Florida State income taxes paid in California 6,780 3,800 4,100 3,125 2,900