Malik sold his ranch, which was his principal residence, during the current taxable year.

At the date of the sale, the ranch had an adjusted basis of $460,000 and was encumbered by a mortgage of $200,000.

The buyer paid him $500,000 in cash, agreed to take the title subject to the $200,000 mortgage, and agreed to pay him $100,000 with interest at 3.5 percent one year from the date of sale.

How much is Maliks realized gain on the sale?

6