9. Michael and Mary Mason sold for $380,000. in November 2019 their principal residence that they had purchased in 2009 for $75,000. They made major capital improvements during their 10 year ownership totaling $25,000.

1. ) What is their excluded gain? How much must they recognize?
2. ) Suppose instead that the Masons sold their home for $720,000. They moved into a smaller house costing $220,000. What is their excluded gain? How much must they recognize?
3. ) Assume instead that the Masons resided in a very depressed neighborhood and the home was sold for $60,000. How much gain or loss is recognized?