Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10 years. Maria, his spouse, has lived there with Pedro for the full 10 years. He sells the house for a realized gain of $340,000. 1. Can Pedro use the 121 exclusion if he and Maria file a joint return? If so, what are the available amount of the exclusion and the recognized gain? 2. Pedro use the 121 exclusion if he files a separate return? If so, what are the available amount of the exclusion and the recognized gain? 3. Assume instead that the realized gain is $550,000 and a joint return is filed. 4. Assume instead that the realized gain is $550,000 and separate returns are filed. 5. Assume instead that Maria and Pedro have been married for only 18 months and that she has lived in his house only since their marriage. They file a joint return.