Milton and Maxine Miller purchased a home in New York City for \(\$ 350,000\) on October 1, 2017. Milton obtained a job in Richmond, Virginia, and on December 1, 2018, the Millers sold their home in New York for \(\$ 550,000\).

a. How much gain can the Millers exclude and how much is recognized?

b. Assume that the Millers instead sold their home on December 1, 2018, for \(\$ 750,000\). How much gain can the Millers then exclude and how much is recognized?