Facts and information listed below is needed to resolve questions 57 through 59: An American individual taxpayer has the following tax basis balance sheet as of December 31, 2012 (see below). The bank that held the nonrecourse obligations foreclosed on the property at year-end. Assume the taxpayer has no other assets or liabilities; really no other assets or liabilities. The fair market value of the assets at year-end was: Cash = $1,000,000 Land = $1,000,000 and Building = $19,000,000. If the loan was a recourse liability instead of a nonrecourse liability, the consequences of the foreclosure transaction would be: A gain of $4,000,000 will be realized on the disposition of the land and building. A loss of $5,000,000 will be realized on the disposition of the land and building. No gain or loss will be realized or recognized. COD income of $5,000,000 and loss of $9,000,000 will be realized. A loss of $4,000,000 on the sale of the property will be recognized. Facts and information listed below is needed to resolve questions 57 through 59: An American individual taxpayer has the following tax basis balance sheet as of December 31, 2012 (see below). The bank that held the nonrecourse obligations foreclosed on the property at year-end. Assume the taxpayer has no other assets or liabilities; really no other assets or liabilities. The fair market value of the assets at year-end was: Cash = $1,000,000 Land = $1,000,000 and Building = $19,000,000. If the loan was a recourse liability instead of a nonrecourse liability, the consequences of the foreclosure transaction would be: A gain of $4,000,000 will be realized on the disposition of the land and building. A loss of $5,000,000 will be realized on the disposition of the land and building. No gain or loss will be realized or recognized. COD income of $5,000,000 and loss of $9,000,000 will be realized. A loss of $4,000,000 on the sale of the property will be recognized