The Bank Forecloses on Lisa's Apartment Complex

Multiple Choice

The bank forecloses on Lisa's apartment complex.The property had been pledged as security on a nonrecourse mortgage,whose principal amount at the date of foreclosure is $750,000.The adjusted basis of the property is $480,000,and the fair market value is $750,000.What is Lisa's recognized gain or loss?

A) $270,000
B) ($750,000)
C) $0
D) ($480,000)
E) None of these