Lana owned a house used as a rental property for three years. During this rental period, she took $60,000 of depreciation deductions. Lana moved into the house and has used it as her principal residence for the past two years. Lana has just sold the house and realized a $200,000 gain. She will recognize gain of:

A) $60,000 B) $200,000 C) $144,000 D) $0

Please show work.