8. Alice, a single woman, buys her home for $200,000 on January 1, 2016. She proceeds to use that home as her principal residence for the next three years. On January 1, 2019, she coverts the home into a 100% rental and rents it out for the year in which it was always occupied by the tenant, On December 31, 2019, she sells the home for $240,000. Disregard selling costs, improvement and repair costs and any other expenses associated with the home including depreciation. How much capital gain will Alice have to recognize (pay taxes on)? a. $0 b. $10,000 c. $40,000 d. None of the above 9. Depreciation for a vacation home is considered a: a. Tier 1 expense b. Tier 2 expense c. Tier 3 expense d. None of the above