Assume Instead That the Bennetts Resided in a Very Depressed

Multiple Choice

Assume instead that the Bennetts resided in a very depressed neighborhood and the home purchased in 2002 for $200,000 (capital improvements of $40,000) was sold for only $110,000. How much loss is recognized?

A) $200,000
B) $130,000
C) $90,000
D) $-0-
E) None of the above