Juanita purchases a house for $200,000. She converts the
property to rental property when the fair market value is
$160,000. After deducting depreciation (cost recovery)
expense of $7,140, she sells the house for $100,000. What is
her recognized gain or loss?
A. $0
B. ($96,870)
C. ($56,870)
D. ($52,860)