Alexis purchased a rental house 3 years ago for $368,000. Her depreciation at the time of the sale is $44,160. Due to a decrease in real estate prices, she sells the house for only $349,600 in 2020. What is her gain or loss for tax purposes?

a. $44,160 loss.

b. $25,760 gain.

c. $25,760 loss.

d. $0.

e. $18,400 gain.