Steiger Company owned investment land subject to a $715,000 recourse mortgage. Steiger failed to make timely mortgage payments, so the creditor foreclosed. At date of foreclosure, Steiger's basis in the land was $587,300, and the land's appraised FMV was $690,000. Steiger completely settled its recourse debt by paying $25,000 cash to the creditor. As a result of the foreclosure, Steiger recognizes: Multiple Choice $102,700 capital gain and $25,000 ordinary loss $612,300 ordinary loss $102,700 capital gain None of these choices are correct

Steiger Company owned investment land subject to a $715,000 recourse mortgage. Steiger failed to make timely mortgage payments, so the creditor foreclosed. At date of foreclosure, Sreiger's basis in the land was $587,300, and the land's appralsed FMV was $690,000. Stelper completely settied its recourse debt by paying $25,000 cash te the creditor: As a result of the foreciosure, Steiger recognizes: Mutipie Choice $102,700 copral gain and $25,000 ordincy loss $6122100 ordinery loss $102200 cajdei gan None of thete choces ere coreca