21. Bill and Marla, who are married and file jointly, own a house as tenants by the entireties and in which they have resided for the past 17 years. They sell the house for $375,000, with realtor's fees of $10,000. Their adjusted basis in the house is $80,000. Since they are in their retirement years, they plan on purchasing a motor home for $50,000 and traveling the country. What is Bill and Marla's recognized gain on the sale of the residence if they use the $ 121 exclusion and what is their recognized gain if they elect to forgo the $ 121 exclusion? With $ 121 exclusion a. S-O- b. $-0- $-0- d. $-0- e. $80,000 Elect to forgo $ 121 exclusion $-0- $80,000 $285,000 $235,000 $365,000 c