Ron and Mary Carson sold for $$375,000$ in November of $2023$ their residence that they had purchased in $2008$ for $$140,000.$ They made major capital improvements during their $11-$year ownership totaling $$68,000.$

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

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b$.$ Suppose instead that the Carsons sold their home for $$793,000.$ They moved into a smaller house costing $$220,000.$ What is their excluded gain? How much must they recognize?

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c$.$ Assume instead that the Carsons resided in a very depressed neighborhood and the home was sold for only $$84,000.$ How much gain or loss is recognized?

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a$.$ What is Melvin's recognized gain?

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b$.$ What is Melvin's basis in his new farm?

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c$.$ What would be Melvin's recognized gain if the price of the new farm had been $$495,000?$ What would the basis be$?$

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d$.$ What would be Melvin's recognized gain if the cost of the new farm was $$370,000?$ What would be the basis of the new farm?