Problem 7 41 (a) (LO 7) Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15, 2018, at a price of $985,000 They rejected several offers in the $900,000 range during the fall Finally, on November 3, 2018, they and the purchaser signed a contract to sell for $965,000 The sale (i e , closing) took place on December 1, 2018 The closing statement showed the following disbursements Real estate agent's commission $38,000 Appraisal fee 800 Advertising cost for sale 1,000 Recording fees 450 Mortgage to First Bank 480,000 Cash to seller 444,750 Norberto and Nita's adjusted basis for the house is $345,000 They owned and occupied the house for ten years and neither have sold any other residences in the past two years On December 20, 2018, they purchased another residence for $320,000 Norberto and Nita file a joint tax return If an amount is zero, enter 0 a Norberto and Nita's recognized gain on the sale is $ b Norberto and Nita's adjusted basis for the new residence is $ c Assume instead that the selling price is $860,000 Norberto and Nita's recognized gain is $, and their adjusted basis for the new residence is $

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Problem 7-41 (a) (LO. 7) Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15, 2018, at

Problem 7-41 (a) (LO. 7)

Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15, 2018, at a price of $985,000. They rejected several offers in the $900,000 range during the fall. Finally, on November 3, 2018, they and the purchaser signed a contract to sell for $965,000. The sale (i.e., closing) took place on December 1, 2018. The closing statement showed the following disbursements:

Real estate agent's commission	$38,000
Appraisal fee	800
Advertising cost for sale	1,000
Recording fees	450
Mortgage to First Bank	480,000
Cash to seller	444,750

Norberto and Nita's adjusted basis for the house is $345,000. They owned and occupied the house for ten years and neither have sold any other residences in the past two years. On December 20, 2018, they purchased another residence for $320,000. Norberto and Nita file a joint tax return.

If an amount is zero, enter "0".

a. Norberto and Nita's recognized gain on the sale is $.

b. Norberto and Nita's adjusted basis for the new residence is $.

c. Assume instead that the selling price is $860,000.

Norberto and Nita's recognized gain is $, and their adjusted basis for the new residence is $