Arlene and Bill are married and own a house. They have lived in the house and used it as their principal place of residence for 3 out of the last 5 years. For the first 2 years they owned the house they rented it and reported $25,000 of taxable income. However, they took depreciation deductions of $13,000 in total over the two years. Their basis in the house was $325,000 and they sold the house for $456,000. They purchase a new home for $400,000. How much taxable income will they recognize on the sale of the house?