Calculate the realized gain

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Reference no: EM1376202

I need help calculating the subsequent problem:

On 1^st July, 2012, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $35,000. The expenses related with the sale of his home total $20,000. On 15^th December, 2012, Ted purchases and occupies a new residence at a cost of $175,000. Calculate the subsequent:

(a) realized gain

(b) recognized gain

Reference no: EM1376202

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