In October of 2016, Tommy and Tammy, husband and wife, sold their (only) residence that they had purchased in 1999 for $400,000 paying $300,000 in cash with a $100,000 mortgage from ABC Bank. They lived there the entire time they owned the home, and they made repairs to the electric and plumbing during their 10-year ownership totaling $40,000. What, if any, is their recognized gain or loss to be included on their jointly filed Form 1040 for 2017?a. $400,000.b. $0.c. $500,000.

d. $440,000.e.None of the above.

400,000 paid+40,000 repairs= 440,000

440,000-400,000= 40,000 loss

500,000 exclusion-40,000= 460,000 exclusion=no recognized gain or loss

my answer is (b) 0= Can you explain if I am on the correct path and if not show me my error?