sale are reduced 21. To calculate a gain or loss on the sale by which of the following? of an asset, the proceeds from the a Tax basis of the property b. Selling expenses C. Amount realized d. A and B above e. All of these Homer and Marge (MFl) sold their home (sales price $850,000, cost $250,000). A paid by the buyer. Homer and Marge owned and lived in their home for 20 22. Thi closing costs were years. How much of the gain is included in gross income? a. $600,000 b. $250,000 c. $100,000 d. $50,000 e. None 23. Jim and Patty Door file a joint tax return and always itemize their deductions. The Door's income for the year is as follows: $120,000 in salary, $3,200 interest income, $750 short-term capital loss. The Door's expenses for the year consist of $2,700 investment interest expense Assuming that the Door's marginal tax rate is 35%, what is the amount of their investment interest expense deduction for the year? a. $2,700 b. $2,450 c. $3,200 d. $500 e. None of these