Frank and Molly met for the first time at a party on May 1,2015. and were married on June 1,2015. On June 8, 2015 they acquired a new home at a total cost of $550,000. Frank's first wife died 17 years ago. For the last 17 years, Frank has owned and occupied his own personal residence which cost him $100,000 and to which he had made $24,000 of improvements over the years. Immediately after his marriage to Molly, he sold this propety for $180,000 and applied all of the net proceeds toward the acquisition of the their new house. Molly has not previously been married. For 3 years prior to the marriage to Frank, Molly had owned and occupied her personal residence, which she bought for $30,000. Molly made no improvements to this property, but was able to sell the property for $400,000, and applied all of the net sales proceeds towards the purchase of the new home to be occupied by her and Frank. Neither Frank nor Molly has used the 121 exclusion at anytime during the last two years.
1. What is Molly's realized and recognized gain on the sale of her personal residence?
2. What is Frank's realized and recognized gain on the sale of his personal residence?
3. What is Frank and Molly's basis in their new marital home?