Firm R owned depreciable real property subject to a $300,000 non-recourse mortgage. The property’s FMV is only $250,000. Consequently, the firm surrendered the property to the creditor rather than continuing to service the mortgage. At date of surrender, Firm R’s adjusted basis in the property was $195,000. Determine Firm R’s cash flow consequences of the disposition, assuming that the gain recognized is taxed at 21 percent.