On October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their personal residence, which they have owned and Iived in lor & years. The realized gain of $325,000 is...

Extracted text: On October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their personal residence, which they have owned and Iived in lor & years. The realized gain of $325,000 is excluded under 5121 (Sale of a Principal Residence). They purchase another personal residence for $525,000 on October 2, 2019. Alice's employer transfers her to the Denver office in August 2020. Jasper and Alice sell their Chicago residence on August 2, 2020 and they purchase a residence in Denver shortly thereafter. The realized gain on the sale is $300,000. Which of the following statements is true regarding the August 2020 sale? O Jasper and Alice cannot exclude any of the gain from the August 2020 sale because they did not own and lve in the home for at least 2 years. O Jasper and Alice can exclude $104,167 on the August 2020 sale O Jasper and Alice can exclude $208,333 on the August 2020 sale. O Jasper and Alice can exclude $250,000 on the August 2020 sale. O Jasper and Alice can exclude the entire realized gain from the August 2020 sale.