. Eduardo,a single taxpayer, sold his home this year. He had owned and lived in the house for 8 years. Eduardo signed a contract on September 19 to sell his home.

Sales price	$550,000
Selling expenses	20,000
Replaced and paid for a broken window on March 2	1,820
Basis of old home before repairs and improvements	275,000

Based on these facts, what is the amount of his recognized gain?

A) $5,000

B) $25,000

C) $40,000

D) $275,000