I think this one is B - Statement (2) alone is sufficient.

Statement (1) tells us that one of the homes was purchased for $110,000. We know that the sum of the 3 purchase prices must be $360,000 (for avg to be 120K), so the other 2 homes must have prices that sum to $250,000. However, there is no way to determine the actual values. For instance, they could be $100,000 and $150,000 in which case $110,000 would be the median. But they could also be $120,000 and $130,000 in which case $120,000 would be the median...Not Sufficient.

Statement (2) tells us that one of the homes was purchased for $120,000. Since this is also the average, we know that the other 2 homes must have either been purchased for $120,000 as well OR one must be higher than 120K and one must be lower. In either case, the median will be $120,000...Sufficient.

Thanks ...