Assets Value Liabilities Value Savings account $9,000 Mortgage balance $88,704 Checking account $2,000 Credit card balances $3,200 6-month CD $2,500 Car loan $9,500 Principal residence $367,000 Car $12,000 Total assets $403,500 Personal property $11,000 Total liabilities $101,404 Net worth $302,096

Income or Expense Amount (Yearly) Income Annual income $55,000 Reinvested interest income $400 Expenses Mortgage payment $6,978 Real estate taxes and insurance $2,200 Utilities $2,400 Groceries $3,000 Dining out $2,400 Credit card payments $960 Car payments $4,400 Gas $900 Auto insurance $1,200 Auto and household maintenance $1,800 Entertainment $3,200 Federal taxes $6,540 FICA $4,320 Personal care $1,500 Clothing $3,000 Charitable donations $2,200 Gifts to others $3,000 Miscellaneous expenses $2,400 Reinvested interest $400

If Bonita sells her current residence for full fair market value (excluding commissions and closing costs), and she purchases a new residence for $180,000 in the same calendar year, the amount of proceeds subject to capital gains tax is a. $7,000 b. $28,296 c. $187,000 d. $257,000.