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Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15 of the current year at a price

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Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15 of the current year at a price of $985,000. They rejected several offers in the $900,000 range during the fall. Finally, on November 3, 2020, they and the purchaser signed a contract to sell for $965,000. The sale (le, closing) took place on December 1. The closing statement showed the following disbursements: Real estate agent's commission $38,000 Appraisal fee 800 Advertising cost for sale 1,000 Recording fees 450 Mortgage to First Bank 480,000 Cash to seller 444,750 Norberto and Nita's adjusted basis for the house is $345,000. They owned and occupled the house for ten years and neither have sold any other residences in the past two years. On December 20, 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 $360,000. What is their recognized gain? Their adjusted basis for the new residence? Norberto and Nita's recognized gain is s and their adjusted basis for the new residence is s

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