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I only need answer for part 2 please Part 1 Karimaghaya purchased the residence on March 23, 1997, for $129,400 and improvements totaling $5,700 since.

I only need answer for part 2 please

Part 1

  1. Karimaghaya purchased the residence on March 23, 1997, for $129,400 and improvements totaling $5,700 since. The original loan has a balance as of January 1, 2020 of $95,200 (principal payments for 2020 are $750) and bears interest at 4 percent. Property taxes for 2020 are $3,400. s other income and expenses for 2020 are these:

Salaries and wages $140,800

State income taxes 6,400

State car tax 225

State sales tax 4,220

Other itemized deductions 3,100

  1. Carolines after-tax cost of owning the residence for 2020. Assume that Carolines marginal tx bracket is 22%.

Part 2

Caroline Karimaghaya from Part 1 sold her principal residence March 16, 2020, for $435,000. Related to the sale, Caroline paid the following:

Sales commissions $13,325

Title transfer, legal, etc. 225

Prepayment penalty on loan 1,220

Painting and other cleanup (January 19) 450

  1. buyer paid Caroline $256 for property taxes she had paid which were allocable to the period after the sale.

  1. replaced the residence on January 22, 2021. She paid $258,000 and made other payments at closing as follows:

Points on new mortgage $ 800

Closing costs 330

Property tax reimbursement to seller 560

Calculate Carolines gain realized and gain recognized on the s

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