Jason's house has an adjusted basis of $150,000 when he sells it for $200,000. He incurs selling expenses of $20,000 and legal fees of $2,000. He had purchased another residence one month prior to the sale for $380,000. What is the recognized gain or loss and the basis of the replacement residence if Jason elects to forgo (not use) the 121 exclusion (exclusion of gain on the sale of a principal residence)?

A. $0 and $380,000

B. $28,000 and $352,000

C. $0 and $408,000

D. $28,000 and $380,000