Rick Dicker sells his principal residence during the current taxable year. At the date of the sale, the residence 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 gave him a $100,000 note receivable to be paid within 1 year.

a. How much is Ricks realized gain on the sale?

b. How much is Ricks recognized gain on the sale?