Gloria Gates Sold the Building in Which She Operated Her

Multiple Choice

Gloria Gates sold the building in which she operated her business. Gloria had acquired the property many years ago for $150,000 and over this period had made major improvements costing $180,000. Gloria had claimed $60,000 in straight-line depreciation at the time of the sale. fte selling expenses paid by Gloria amounted to
$40,000. Bill purchased the property by (1) giving Gloria $170,000 in cash; (2) giving Gloria unlike property with a fair market value of $180,000; (3) assuming Gloria's mortgage on the property of $140,000; and (4) paying a delinquent real estate tax bill on the property of $50,000. What is Gloria's gain on the sale?

A) $40,000
B) $180,000
C) $220,000
D) $230,000
E) $270,000