Mr and Mrs. Anderson bought a home in 2003 for $450,000 that was their primary residence until they sold it in 2018 for $625,000. The balance of their mortgage upon selling the home was $275,000. How much and what type of taxable gain will the Pavels report in 2018?

a. $350,000 long-term capital gain

b. $175,000 long-term capital gain

c. $175,000 ordinary gain

d. $0 capital gain