For the last 5 years, Mr. and Mrs. Vicks rented their furnished basement to local college students. When determining thier taxable income each year, they deducted a portion of the utilities, property taxes, interest and depreciation based on the allocation that 15% of the house was used for rental purposes. The house originally cost $158,000 (10% allocated to land) on August 1,2010 and has been continuously rented since that date.

The Vick's sold the house on September 19,2016 for $300,000.

What is the realized and recognized gain on the sale of the house and what type of gain is it?