27. Lonzo is single. He sold his house and connecting property in July for $395,000. The house was purchased in 1956 by Lonzo and his wife (now deceased) for $35,000. Lonzo's wife has been deceased for four years. Calculate the exclusion on the sale of Lonzo's house. Lonzo completed the following work/purchases to the house during the time he lived there. Purchase of connecting property $30,000 $55,000 $15,000 Cleaned all plumbing pipes $2,000 Repaired heat pump Installed central heat/air $ 800 $4,250 950 Addition of 1,200 square feet In-ground pool Repaired slate shingles a) $255,750 b) $260,000 c) $250,000 d) $395,000 28. Assume that Lonzo owned the property as rental property beginning in 1995. During the time the house was rental property, Lonzo had $16,000 in depreciation and completed the same work/purchases listed in the previous question. Calculate Lonzo's gain on the sale of the house a) $268,000 b) $271,750 c) $250,000 d) $255,750 29. To avoid paying taxes on the entire gain in the year of sale, Lonzo sold his rental property through an installment arrangement. On which form is an installment sale first reported? a) Form 1040 b) Schedule D c) Form 4797 d) Form 6252