Barnett Corporation Owns an Office Building That Cost $900,000.

Question 25
Multiple Choice

Barnett Corporation owns an office building that cost $900,000.Barnett has taken $600,000 of depreciation on the building.The property is subject to a $600,000 mortgage.The office building has a current FMV of $400,000.Barnett Corporation is liquidated and the office building is distributed to a single individual shareholder who assumes the mortgage.Barnett Corporation must recognize A) no gain or loss. B) a $100,000 gain. C) a $300,000 gain. D) none of the above