Rayburn Corporation has a building that it bought during year 0 for $850,000. It sold the building in year 5. During the time it held the building Rayburn depreciated it by $100,000.

What is the amount and character of the gain or loss Rayburn will recognize on the sale in each of the following alternative situations?

a. Rayburn receives $840,000.

b. Rayburn receives $900,000.

c. Rayburn receives $700,000.