QUESTION 4 Your friend JJ purchased a property for development. The property had a cost basis of $5,000,000, JJ paid $1,250,000 cash, the remaining $3,750,000 financed via non-recourse mortgage. Unfortunately, the development was a flop and JJ couldn't meet the mortgage payment. At the time of default, the mortgage had a balance of $6,500,000 due to refinancing. The accumulated depreciation was $650,000 fair market value at the time of foreclosure was $6,000,000. What is the gain or loss on foreclosure? A. Gain of $5.950.000 B. Gain of $2,150,000 C. Loss of $650.000 D. Gain of $5,350,000 E. None of the other responses