Problem 4-8 Sale of a Personal Residence (LO 4.6)

On July 1, 2019, Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted's basis in his residence is $48,776. The expenses associated with the sale of his home total $22,080. On December 15, 2019, Ted purchases and occupies a new residence at a cost of $175,000.

Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence.

Realized gain	$......................
Recognized gain	$.......................
Adjusted basis of the new residence	$........................