56. Shawn, a single taxpayer, sold the house he lived in for seven years for $700,000. He purchased the house for $285,000. He made improvements at a cost of $125,000 and paid a $30,000 commission on the sale. What are Shawn's realized and recognized gains on the sale? a. $260,000 realized and recognized b. $290,000 realized and recognized c. $260,000 realized and $10,000 recognized d. $260,000 realized and no gain recognized