Buck and Pat Johnson purchased their principal residence over 10 years ago for \($200,000.\) They have decided to downsize and sell the place this year for \($750,000.\) The Johnsons used the proceeds from the sale of their principal residence to purchase a smaller home for \($250,000.\) What is the amount of recognized gain that they must report on Schedule D of the Form 1040?

A. – 0 – .

B. \($50,000\).

C. \($250,000\).

D. \($350,000\).