Abner sells his residence to Daisy on October 15, 2010. Indicate which of the following statements is correctly associated with 121 (exclusion of gain on sale of principal residence).

Selling expenses increase the seller's amount realized and increase the buyer's adjusted basis.

Repair expenses of the seller decrease the seller's amount realized and increase the buyer's adjusted basis.

Selling expenses decrease the seller's amount realized, and repair expenses decrease the seller's amount realized.

All of the above None of the above