Bill and Alice are married, age 42 and 40, have no children and had the following transactions during 2014:

a. They sold their old residence on January 28, for $380,000. The basis of their old residence, purchased in 1999, was $70,000. The selling expenses were $20,000. On May 17, they purchased and moved into another residence costing $150,000.

b. On April 28, they sold for $8,000 stock that Alice had received as a gift from her mother, who had purchased the stock for $10,000 in 2004. Her mother gave Alice the stock on November 15, 2011, when the fair market value was $9,400.

c. On May 24, Bill sold for $21,000 stock inherited from his father. His father died on June 14, 2008, when the fair market value of the stock was $9,000. Bill