Debra, who is single, listed her townhouse in Washington for sale with a realtor at a price of $750,000. She purchased it ten years earlier for $650,000. She ended up selling the property for $745,000 and incurred the following expenses and payments as part of the closing: real estate agent commission $29,000; appraisal fee $500; recording fees $500; payment to Bank of America on account of the mortgage $680,000. Debra then purchased another residence for $710,000.

a. Calculate Debra's recognized gain on the sale.

b. What is Debra's adjusted basis for the new residence?

c. Assume instead that the selling price is $1,230,000. What is Debra's recognized gain and what is Debra's adjusted basis for the new residence?