Kerri and John are married. On May 12, 2016, they sell their home for $190,000 and purchase another residence costing $225,000. What is Kerri and John's realized and recognized gain in each of the following cases?
a. They purchased the residence for $85,000 on February 8, 2014.
b. Kerri purchased the residence for $85,000 on June 13, 2013. They are married on June 13, 2014, and use Kerri's house for their principal residence.
c. Assume the same facts as in part b, except that they sell the house for $390,000.