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Rebel purchases a house for $52,000. Rebel converts the property to rental property when the fair market value is $115,000. After deducting depreciation (cost recovery)

Rebel purchases a house for $52,000. Rebel converts the property to rental property when the fair market value is $115,000. After deducting depreciation (cost recovery) expense of $1,130, Rebel sells the house for $120,000. What is the recognized gain or loss? 


a. $0 


b. $69,130 


c. $37,630 


d. $68,000 


e. $6,130

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