LO 8.6 16. On July 1, 2010, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted’s basis in his residence is $35,000. The expenses associated with the sale of his home total $20,000. On December 15, 2010, Ted purchases and occupies a new residence at a cost of $175,000. Calculate Ted’s realized gain, recognized gain, and the adjusted basis of his new residence.

Realized gain $ ____________ Recognized gain $ ____________ Adjusted basis of the new residence $ ____________