Ren is single and inherits a home from his deceased aunt on January 1, 2018 that had a basis to his aunt of $290,000 and a fair market value of $500,000 at the date of her death. Ren decides to move into the inherited home and sell his old principal residence, which he has owned and occupied since December 1, 2015. The old residence has an adjusted basis of $200,000. On September 16, 2018, he sells the old residence for $500,000. Ren incurs selling expenses of $30,000 and legal fees of $2,000. He decides to add a pool, deck, pool house, and recreation room to the inherited home at a cost of $100,000. These additions are completed and paid for on November 1, 2018. What is his recognized gain on the sale of his old principal residence and his basis in the inherited home? $0; $600,000 $18,000; $500,000. b. $268,000; $600,000. $ 18,000; $600,000. d. None of the above. e