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

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Definitions:

Annexation

The act of incorporating a land area into another entity, such as a country or city, often involving a change in political control.

Mexican Territory

Historical lands under the jurisdiction of Mexico, including areas that are now part of the United States following territorial changes.

Mammy

A historical stereotype of a black woman, often depicted as a devoted and submissive servant to white families, particularly in the southern United States.

Plantation Owner

An individual who owns extensive estate used primarily for agricultural production, historically associated with the use of slave labor.