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X Corporation owns real estate that cost it $900,000 upon which X deducted $600,000 in accumulated depreciation. The real estate has a fair market value

X Corporation owns real estate that cost it $900,000 upon which X deducted $600,000 in accumulated depreciation. The real estate has a fair market value of $400,000 and is subject to a mortgage of $600,000. X Corporation is completely liquidated and the real estate is distributed to its sole shareholder who assumes the mortgage. What amount of gain or loss, if any, must X Corporation recognize on this liquidating distribution?

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