Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15, 2019, at a price of $985,000. They rejected several offers in the $900,000 range during the fall. Finally, on November 3, 2019, they and the purchaser signed a contract to sell for $965,000. The sale (i.e., closing) took place on December 1, 2019. The closing statement showed the following disbursements: Real estate agent's commission $38,000 Appraisal fee Advertising cost for sale Recording fees Mortgage to First Bank Cash to seller 444,750 800 1,000 450 480,000 Norberto and Nita's adjusted basis for the house is $345,000. They owned and occupied the house for ten years and neither have sold any other residences in the past two years. On December 20, 2019, they purchased another residence for $320,000. Norberto and Nita file a joint tax return. If an amount is zero, enter "O". a. Calculate Norberto and Nita's recognized gain on the sale. b. What is Norberto and Nita's adjusted basis for the new residence? c. Assume instead that the selling price is $860,000. What is their recognized gain? Their adjusted basis for the new residence? Norberto and Nita's recognized gain is $ and their adjusted basis for the new residence is $