Courtney Sells a Cottage at the Lake That the Family

Multiple Choice

Courtney sells a cottage at the lake that the family had used for their summer vacations.The purchaser paid Courtney $100,000 and assumed the mortgage which had a principal balance of $50,000.Courtney had purchased the cottage five years ago for $170,000.Courtney will recognize

A) a gain of $20,000.
B) no gain or loss.
C) a loss of $70,000.
D) a loss of $20,000.