On August 31, 2022, Charlie and Angel sell their personal residence in Jacksonville, Florida where they have lived for 10 years. Charlie and Angel always file a joint return. The realized gain of $399,400 was excluded under Section 121. They purchased another personal residence in Jacksonville for $639,040 on September 1, 2022. However, in 2023, Charlies employer transfers him to New York City. They sell their Jacksonville home on February 28, 2023, and purchase a new home in New York City. The realized gain on the second sale is $359,460.

Assuming MFJ, what is the recognized gain on the second sale?