Stephen buys a house by a lake for $450,000 which he uses as his personal vacation home (not as a primary residence). He builds an additional room on the house for $40,000. He sells the property for $560,000 and pays $28,000 in commissions and $4,000 in legal fees in connection with the sale. What is the recognized gain or loss on the sale of the house?

A. $70,000

B. $110,000

C. $0

D. $38,000