Depreciation on the building

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Reference no: EM13136022

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

Reference no: EM13136022

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