During $2023,$ Georgie and Ananda, 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.$ Because 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?

a$.$ $$0$

b$.$ $$25,000$

c$.$ $$525,000$

d$.$ $$15,000$

e$.$ $$35,000$