Adams acquired Blackacre for $50,000 cash plus a purchase money mortgage of $200,000. Over the next couple of years Adams claimed $100,000 of depreciation (cost recovery deduction) on Blackacre. In addition over the same period of time he paid off $80,000 of the purchase money mortgage. At a time when Blackacre had a FMV of $400,000, Adams sold Blackacre to Sally, who assumed the existing debt, gave Adams her personal note in the amount of $100,000 and a check for the balance.

(a) Make the journal entry to record Adams sale of Blackacre to Sally.