accounting- taxation. Thanks so very much!

Angela, who is a single individual, rented an apartment on 72nd Street in New York City ("the apartment") on January

1 of Year 1. This was the only residence in which she lived. Two years later (January 1 of year 3) Angela purchased

the same apartment from the owner for $1,200,00. 6 months later (July 1 of Year 3) Angela was told by her physician

that she should move out of New York City permanently due to an underlying raspatory medical condition which made

the New York City air quality and population density particularly dangerous for Angela. As a result, Angela put her

apartment on the market and moved immediately to Arizona. The apartment sold on January 1 of Year 4 for

$1,420,000 sale price, and Angela incurred $30,000 of selling expenses. How much income, if any, will Angela

recognize from the sale of the apartment?

a. $0

b. $65,000

c. $95,000

d. $220,000

e. None of a-d is an amount Angela will recognize