NYS Realty LLC has a mortgage on an office building in the amount of $7,300,000. NYS lost a major tenant and can't service the debt. The lender has agreed to reduce the mortgage principal by $300,000. Which of the following will NYS do? O A. Recognize a capital gain of $300,000. B. Reduce the basis of the property by $300,000. C. Refinance the mortgage. D. Enter into a Section 1031 exchange. E. All of the above