Leonard and Linda Lindsay sold for $350,000 in October 2019 their residence that they had purchased in 2009 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?