John and Shirley Duo are married taxpayers who are planning to file MFJ for 2020. They have the following items of income for 2020. Please indicate what amount, if any, should be included in AGI for 2020 for each potential income item:

• John and Shirley sold their home in December 2020 for $850,000. They bought their home in 2010 for $200,000 and used the home as their primary residence from 2010-December 2016. What amount, if any, should be included in AGI as a result of this transaction?

Group of answer choices

$400,000

$0

$650,000

$850,000

$150,000