Stewart, age 44, sells his personal residence of 4 years on June 14, 2014, for $185,000. The expenses of sale are $15,000 and he has paid for capital improvements of $3,000. Stewart purchased the residence for $100,000. On February 2, 2015, Stewart purchases and occupies a new residence at a cost of $200,000.

a. Calculate the gain realized on the sale of Stewart's residence.

b. How much gain must be recognized on the sale of Stewart's residence?

c. Calculate Stewart's basis in the new residence.