rob purchased a residence on june 21, 2000 for 300,000. on august 10, 2006 rob married laura. they both use robs residence as their principal residence for the entire time and own no other residences. in 2013 rob, the sole owner of the house, deeds (transfers) it to laura so that she is the sole owner of the house. the transfer is a gift, not to be considered a sale as result laura's adjusted basis of 300,000. during current year they sell house for 850,000 without reinvesting anything. they file joint income tax return.

a. compute gain or loss realized

b. compute gain or loss recognized