Tony and Janice have been married and living in Tony's home for just over 2 years. Tony remains the sole owner of the house. In the current year, they sell the home, which has an adjusted basis of $80,000, for $450,000. Tony and Janice file a joint return in the current year. What is the recognized gain on the sale of Tony's home?

Recognized gain of $0.

Recognized gain of $80,000.

Recognized gain of $120,000.

Recognized gain of $370,000.

None of the above.