Tina Purchases a Personal Residence for $278,000,but Subsequently Converts the Property

question 21

Multiple Choice

Tina purchases a personal residence for $278,000,but subsequently converts the property to rental property when its FMV is $275,000.Assume depreciation of $65,000 has been deducted after conversion to rental use.If Tina sells the property for $200,000,her realized gain or loss will be

• A)($10,000)loss.
• B)($13,000)loss.
• C)($75,000)loss.
• D)($78,000)loss.