On 3/1/20X5, Amber sold a rental house in a transaction that qualified for Internal Revenue Code Section 1031 Like-Kind Exchange treatment. Amber bought the rental house on 6/15/20X0 for $150,000. On 3/1/20X5, Amber's adjusted basis in the rental house that she sold was $100,000. Amber sold the rental house for $700,000, and did not receive any boot in the transaction. Amber bought a new rental house pursuant to the like-kind exchange for $700,000 on 5/1/20X5. What is Ambers basis in the rental house that she bought on 5/1/20X1?

Group of answer choices

a. $150,000

b. $100,000

c. $700,000

d. $550,000

Melissa purchased her principal residence on 1/1/20X1 for $150,000. She sold her principal residence on 2/1/20X9 for $350,000, and her filing status is Single. She had lived in the same house from 1/1/20X1 through 2/1/20X9. Melissa elects to take the maximum amount of gain exclusion on the sale of her principal residence that is allowed by Internal Revenue Code Section 121. How much gain does she recognize on the sale of her principal residence on her Federal Income Tax Return?

Group of answer choices

a. $0

b. $100,000

c. $150,000

d. $200,000