Response to the following problem:
On September 29, 2014, Tripper sold rental property for $230,000. Five percent of the sales price was allocated to the furnishings. Tripper originally purchased the home (a condominium) in 1992, and uses it as his main home. He paid $160,000 for the home and spent $35,000 on its furnishings. From 1992-2007, Tripper made improvements to the home totaling $34,000. On March 4, 2008, he converted the home to rental property. The fair market value (FMV) of the home itself at the time of the conversion was $182,000. The FMV of the furnishings were $5,000. Tripper used MACRS to depreciate both the condo and its furnishings. This was the only depreciable property Tripper placed in service during 2008.
Compute Tripper's recognized gain or loss on the sale of the home and on the sale of its furnishings.