Alexandria got married in November of 2021 and her husband moved into the home Alexandria already owned, which had a basis of $300,000. Alexandria had owned and occupied the residence of 6 years. Neither Alexandria nor her husband had excluded the gain on the sale of any other residence during the last 3 years. In March of 2022, Alexandria and her husband decided to sell the house. To make it more attractive to prospective buyers, Alexandria added a swimming pool in the backyard at a cost of $36,000 and paid for the work immediately. They completed a sale of the house in May for $980,000, Brokers commissions and other selling expenses amounted to $53,000. To make life easier, Alexandria and her husband decided not to buy a replacement house. Instead they rented an apartment and purchased an annuity with the net proceeds from the sale. What is the amount of the recognized gain to be reported on their joint federal income tax return for 2022?