At the end of $2020,$ Mr$.$ Vaughn sold both his city home and his

summer cottage$.$ Every year he has spent at least a portion of the

year living in each of the two locations. When he is not residing

in these properties they are left vacant. Relevant information on

the two properties is as follows: City Home Cottage Year acquired

$20032003$ Cost $$264,000$ $ $36,000$ Gross proceeds from sale $528,000$

$330,000$ Real estate commissions $32,00016,000$ Mr$.$ Vaughn wishes to

minimize any capital gains resulting from the sale of the two

properties. Required: Describe how the residences should be

designated in order to accomplish Mr$.$ Vaughn$$s goal. In addition,

calculate the amount of the gain that would arise under the

designation that you have recommended?