Isaac is the landlord when a fire destroyed one of his rental buildings.Even though the lease required the tenants (all cash basis) to continue to pay rent, Isaac accepts a payment of $1,000 in full cancellation of the lease.As a result of these events:

A. Isaac doesn't have to recognize any income.

B. Isaac has $1,000 of capital loss.

C. Isaac has $1,000 of capital gain.

D. Isaac has $1,000 of ordinary income.