Mr. and Mrs. Axelson sold their personal residence in January 2012 for $325,000. Selling expenses were $20,000. The Axelsons purchased the house 30 years ago for $40,000. The gain reported on the Axelsons' tax return is:
a. $0.
b. $15,000.
c. $35,000
d. $265,000.
e. none of the above.