The Pratts (a married couple) purchased their home for $400,000. They have lived in the home, as their main residence, for six years. While they lived at the house, the installed a new roof costing $15,000 and added a small addition costing $25,000. At the end of the sixth year, they sold the home for $700,000 and paid a 10% commission to the real estate agent who listed and sold the home for them. Based on this information, answer the following four questions, 1. What is the adjusted basis in their home? 2. What is the realized gain on the sale of their home? 3. What amount of the gain are they required to include in their taxable income? 4. Assume all the above facts are the same, except that the Pratts have only lived in the home for one year and decided to sell it because they didn't like their neighbors. How much of the gain are they required to include in their taxable income