Al and Beth owned their home jointly and had occupied it as their principal residence since acquiring the home in 1993. In June 2010, the Orans bought a condo for $190,000 to be used as their principal residence. What amount of gain must the Orans recognize on their 2010 joint return from the sale of their residence?
a) $ 90,000
b) $150,000
c) $340,000
d) $400,000
Answer: a) $ 90,000