Peggy, a single person, inherited a home on January 1, 2020 that had a basis in the hands of the decedent of $120,000 and a fair market value of $200,000 at the date of the decedents death. She decided to sell her old principal residence, which she has owned and occupied for 39 years with an adjusted basis of $65,000 and move into the inherited home. On January 10, 2021, she sells her old residence for $450,000. Before she sold it, she spent $14,000 on fix-up expenses (painting, plumbing repair etc.). Realtor commissions of $21,000 were paid on the sale of the house.

a. What is her realized and recognized gain on the sale of her principal residence?

b. What is her basis in the inherited home?