Frankie and Annette purchased a beach home in 2010 for $350,000, and immediately began using it as their principal residence. In 2012, they purchased the adjacent vacant lot for $100,000 to protect their ocean view and provide a buffer between neighbors. In 2020, their beach home was completely destroyed by a hurricane. Their insurance company paid Frankie and Annette $600,000 (the insured value of their home) in March. Deciding they no longer liked the beach life (actually, hurricanes), In June, Frankie and Annette sold the lot on which the house used to be for $150,000. Then, in December, they sold the adjacent lot for $150,000. Research Issues: Are Frankie and Annette eligible to exclude from income tax any associated proceed from the insurance policy and the two separate lot sales? Required: Search our tax research database to find the relevant tax authority(ies). Present your Frankie and Annette purchased a beach home in 2010 for $350,000, and immediately began using it as their principal residence. In 2012, they purchased the adjacent vacant lot for $100,000 to protect their ocean view and provide a buffer between neighbors. In 2020, their beach home was completely destroyed by a hurricane. Their insurance company paid Frankie and Annette $600,000 (the insured value of their home) in March. Deciding they no longer liked the beach life (actually, hurricanes), In June, Frankie and Annette sold the lot on which the house used to be for $150,000. Then, in December, they sold the adjacent lot for $150,000. Research Issues: Are Frankie and Annette eligible to exclude from income tax any associated proceed from the insurance policy and the two separate lot sales? Required: Search our tax research database to find the relevant tax authority(ies). Present your