This year, Barney and Betty sold their home (sales price $990,000; cost $268,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income?

Multiple Choice

• $404,000.
• $62,000.
• $330,000.
• None of the choices are correct.
• $722,000.