- AHUENDUR Or det income, so this is not relevant unless a Form 1099-C is also received There can be capital gain from this event, but not ordinary income. Mark for follow up Question 31 of 75. Dorothea originally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $1,150, and resale expenses were $1,350. Repossession costs were $2,900. She incurred $1,100 for improvements prior to the resale. What is Dorothea's recomputed gain? O $600 O $1,100 $2,350 $3,500