James Smith property is foreclosed. He is not bankrupt or insolvent. At the time of foreclosure, the property's fair market value was $4,000,000. The non- recourse mortgage balance is $4,500,000/ What is the cancellation of debt income amount? A. $4,500,000. B. $4,000,000. O C. $500,000. D. $425,000. E. None of the above