Leonard and Linda Lindsay sold for \(\$ 350,000\) in October 2018 their residence that they had purchased in 2008 for \(\$ 100,000\). They made major capital improvements during their 10 -year ownership totaling \(\$ 30,000\).

a. What is their excluded gain? How much must they recognize?

b. Suppose instead that the Lindsays sold their home for \(\$ 700,000\). They moved into a smaller home costing \(\$ 200,000\). What is their excluded gain? How much must they recognize?

c. Assume instead that the Lindsays resided in a very depressed neighborhood and the home was sold for only \(\$ 80,000\).

"How much gain or loss is recognized?