1. Francis lives at her home 123 Main Street as her principal residence for just the past year and a half. Francis filing status is single. She had purchased the home for $350,00 including a down payment of cash of $100,000 and a mortgage of $250,000 (on which she has only made interest payments and has not paid down any of the principal). She sells this home to Yvonne for $100,000 cash and a home on Wellington Street worth $300,000. Yvonne also assumes Francis mortgage liability. What is Francis gain realized and gain recognized resulting from the sale of her home at 123 Main Street?
   1. Gain realized of $550,000 and gain recognized of $550,000.
   2. Gain realized of $550,000 and gain recognized of $300,000.
   3. Gain realized of $300,000 and gain recognized of $300,000.
   4. Gain realized of $300,000 and gain recognized of $50,000.