1. Ted, a sole proprietor, sold his office building to Sam. Ted had originally purchased the building for $340,000. As of the date of the sale, Ted had recorded $140,000 of accumulated depreciation. Sam paid Ted $190,000 cash for the building. In addition, Ted still owes $50,000 on debt incurred to purchase the building, and Sam assumes this liability. Ted also paid a $5,000 commission to his realtor for facilitating the sale. What is Ted's recognized gain or loss on the sale to Sam?