38. Eevard, a single taxpayer, sold his home this year. He had owned and lived in the house for 10 years. Edvard signed a contract on March 4 to sell his home. Sales price $600,000 Selling expenses 15,000 Replaced and paid for a broken window on March 2 800 Basis of old home before repairs and improvyments 310,000 Based on these facts, what is the amount of his recognized gain? A) SO B) $25,000 C) $40,000 D) $275,000