Angelica purchases a house for $165,000. She converts the property to rental property when the fair market value is $140,000. After deducting depreciation (cost recovery) expense of $3,130, she sells the house for $100,000. What is her recognized gain or loss?

	a.	($65,000).
	b.	($36,870).
	c.	None of the above.
	d.	$0.
	e.	($62,870).