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 the above