During the current year, Ted and Judy, a married couple, decided to sell their residence, which had a basis of $162,000. They had owned and occupied the residence for 11 years. They sold the house in May for $405,000. Broker's commissions and other selling expenses amounted to $24,000. Since they both are age 68, they decide to rent an apartment. They purchase an annuity with the net proceeds from the sale. What is the recognized gain?