In 2000,Michael Purchased Land for $100,000

Multiple Choice

In 2000,Michael purchased land for $100,000.Over the years,economic conditions deteriorated,and the value of the land declined to $60,000.Michael sells the property in this year,when it is subject to a $30,000 nonrecourse mortgage.The buyer pays Michael $34,000 cash and takes the property subject to the mortgage.Michael incurs $5,000 in real estate commissions.Michael's gain or loss on the sale is

A) $4,000 gain.
B) $1,000 loss.
C) $36,000 loss.
D) $41,000 loss.