Barnett Corporation $($a C corporation$)$ owns an office building that cost $$900,000.$ Barnett has taken $$600,000$ of depreciation on the building. The property is subject to a $$600,000$ mortgage. The office building has a current FMV of $$400,000.$ Barnett Corporation is liquidated and the office building is distributed to a single individual shareholder who assumes the mortgage. Barnett Corporation must recognize

Question $3$Select one:

a$.$

no gain or loss.

b$.$

a $$100,000$ gain.

c$.$

a $$300,000$ gain.

d$.$

None of these