karl munch has used a portion of his residence, which he bough 15 years ago, for business purposes. he has taken depreciation deductions since he...

karl munch has used a portion of his residence, which he bough 15 years ago, for business purposes. he has taken depreciation deductions since he bough the home. when he sells the home in May of 2017, his gain is $150,000, of which is attributable to depreciation. Which of the following regarding this sale is true?

a. A total of $5,000 of his gain does not qualify for the home sale exclusion

b. The basis in Karl's new home must be reduced by $5,000

c. The depreciation deductions do not affect his exclusion.

d. The depreciation deductions reduce the maximum exclusion amount.