Question: 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

Rayburn 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.

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