Melba's office building was foreclosed upon and the mortgage holder issued Form 1099-A, Acquisition or Abandonment of Secured Property, to her, reporting the outstanding balance of the loan as $125,000, and the fair market value of the building was $146,000 on the date of foreclosure.

What is the amount Melba realized from the foreclosure of this property, which was secured by a nonrecourse loan?

$0

$21,000

$125,000

$146,000