During 2021, George and Ann, a married couple, decided to sell their residence, which had a basis of $250,000. They had owned and occupied the residence for 12 years. To make it more attractive to prospective buyers, they had the outside repaired and painted in April at a cost of $12,000 and paid for the work immediately. They sold the house in May for $800,000. Broker's commissions and other selling expenses amounted to $50,000. Since they both are age 68, they decide to rent an apartment. They purchase life insurance with the net proceeds from the sale. What is their recognized gain