Lana Owned a House Used as a Rental Property for Three

Multiple Choice

Lana owned a house used as a rental property for three years.During this rental period,she took $60,000 of depreciation deductions.Lana moved into the house and has used it as her principal residence for the past two years.Lana has just sold the house and realized a $200,000 gain.She will recognize gain of

A) $0.
B) $60,000.
C) $200,000.
D) $144,000.