M moved into his house six years ago paying $150,000. M has used it as his principal residence for the entire period and he is the sole owner. M files a single Federal income tax return. During the current year M sold his house for $240,000. M moved into an apartment in the same year and did not buy another house. Which of the following is the most accurate?
a. M has a $10,000 loss recognized
b. M has a $90,000 gain recognized because he didnt replace his principal residence after sale
c. M has no gain or loss recognized because he meets the ownership and use tests.
d. M has a $150,000 loss.