Larry sold both his home and vacation home in 2021. He bought his home in 2014 and realized a capital gain of $200,000 on its sale. He bought the vacation home 2016 and realized a capital gain of $180,000 on its sale. Which of the following alternatives will give Larry the least amount of taxable income in 2021?

Group of answer choices

a) Designate the home as a principal residence for 3 years and the vacation home for 4 year

d) Designate the home as a principal residence for 4 years and the vacation home for 3 years

b) Designate the home as a principal residence for 3 years and the vacation home for 5 years

c) Designate the home as a principal residence for 7 years and the vacation home for 1 years