Mr. and Mrs. Axelson sold their main home in January 2018 for $325,000. Selling expenses were $20,000. The Axelsons purchased the house 30 years ago for $40,000. The gain reported on the Axelsons' joint tax return is:

Question 12 options:

1)

$0.

2)

$15,000.

3)

$35,000

4)

$265,000.

5)	none of the above.