When Her Property Was Fully Depreciated and Was Still Encumbered

question 36

Multiple Choice

When her property was fully depreciated and was still encumbered by a mortgage of $6,000, Jamelle sells it subject to the mortgage to David for $1,000. What is Jamelle's realized gain or loss?

• A)$ - 0 -
• B)$1,000 gain
• C)$5,000 gain
• D)$6,000 gain
• E)$7,000 gain