Arnold (age 60) and Beatrice (age 45) are married. They sold their home, owned by Arnold, at a profit of $300,000 on March 1, 2020. Beatrice unexpectedly died in September 2020 of a disease. Arnold remarried in February 2021 and purchased a new, more expensive home in March. Beatrices mother was appointed as executor of her estate. She elected to file a separate return for Beatrice for 2020. If Beatrices mother does not join Arnold in electing to exclude gain, how much of the gain can Arnold exclude on his 2020 return?

• A.$300,000.

• B.$250,000.

• C.None.

• D.$150,000.

On January 1, 2019, Fred and Mary Lou purchased a home for $150,000. Fred and Mary Lou are married and file jointly. On January 1, 2020, Fred and Mary Lou decided that they did not like the home and sold it for $158,000. What is the recognized gain on the sale?

• A.$0

• B.$8,000

• C.$158,000

• D.$4,000

On February 1, Year 1, Jamie purchased a home for $96,000. On January 1, Year 2, Jamie decided he did not like his house and sold it for $108,000. What is his recognized gain on the sale?

• A.$6,500

• B.$5,500

• C.$0

• D.$12,000

Tim and Gwenn sold their jointly held home on June 19 of the current year for $435,000. Their adjusted basis in the home at that time was $200,000. They both have lived in the home for the past 5 years. What is the recognized gain on the sale of the home?

• A.$235,000

• B.$250,000

• C.$500,000

• D.$0

In a nontaxable exchange, Tony traded a warehouse having an adjusted basis of $50,000 and a fair market value of $75,000 for another warehouse having a fair market value of $110,000. In addition, Tony paid cash of $30,000. What is Tonys basis in the warehouse?

• A.$110,000

• B.$105,000

• C.$80,000

• D.$75,000