Fran Owns a Commercial Office Building with a Fair Market

Multiple Choice

Fran owns a commercial office building with a fair market value of $850,000. She purchased the building as an investment for $815,000 in 2006. She has deducted $115,000 in depreciation. Fran trades the building for an apartment complex. The apartment complex has a value of $850,000, and the exchange qualifies for like-kind deferral treatment. What is Fran's recognized gain on the exchange?

A) $- 0 -
B) $35,000
C) $115,000
D) $150,000
E) $850,000