On January 3, 2022 you retain a new client. The couple, husband and wife, purchased a personal residence October 1, 2020. The personal residence has one bedroom and one bathroom. The wife gave birth to triplets on October 1,2021 . The couple decides that their current residence is too small for their growing family. They sold the residence on December 31, 2021. Their realized gain is $325,000. Which of the following statement is most accurate: 1. More information is needed. 2. The couple may elect to exclude $250,000 of the gain. 3. The couple may elect to exclude all of the gain. 4. Under all circumstance the entire gain will be recognized for tax purposes. 5. The couple may elect to exclude $125,000 of the gain. Moving to the next question prevents changes to this answer. Question 3 of 15