Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2014, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2014, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2014. The closing statement showed the following disbursements:

Real estate agent’s commission .......$ 21,780

Appraisal fee .............. 600

Exterminator’s certificate .......... 300

Recording fees .............. 800

Mortgage to First Bank .......... 305,000

Cash to seller .............. 34,520

Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2014, Wesley purchases another residence for $325,000.

a. Calculate Wesley's recognized gain on the sale.

b. What is Wesley's adjusted basis for the new residence?

c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?