Eighteen months ago Mr. and Mrs. Lambert purchased a home for $750,000. They made $250,000 in renovations, and then Mr. Lambert was transferred. Today, the home sold for $1,100,000, and they paid the brokerage a 5% commission. How much capital gains can they defer

a) $50,000
b) $100,000
c) $150,000
d) $200,000