Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2020, for $160,000. He lived in the house for 7 years. The expenses of the sale are $9,100, and he has made capital improvements of $11,000. Larry’s cost basis in his residence is $85,000. On November 30, 2020, Larry purchases and occupies a new residence at a cost of $150,000. Calculate Larry’s realized gain, recognized gain, and the adjusted basis of his new residence.
a. Realized gain $_______________
b. Recognized gain $_______________
c. Adjusted basis of new residence $_______________