$48,000 realized gain would they recognize if they sold the new residence because Mrs. Nixon accepted a job in a different state and the family had to relocate.
When an asset is sold for more than it cost to buy it, a realized gain occurs. It happens when an asset is sold for more than its book value cost.
A balance sheet may carry an asset at a level well above its cost, but because the asset is only assessed at its fair market value, any gains made while it is still owned are deemed unrealized. If an asset is sold at a loss, the loss is known as a realized loss.
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