Pedro borrowed $45,000 to purchase a machine.He later borrowed $15,000 using the machine as collateral.Both notes are nonrecourse.Eight years later,the machine has an adjusted basis of zero and two outstanding note balances of $30,000 and $6,000.Pedro sells the machine subject to the two liabilities for $21,000.What is his realized gain or loss?
A)$0.
B)$21,000.
C)$51,000.
D)$57,000.
E)None of the above.

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The Answer of Pedro borrowed $45,000 to purchase a machine.He later borrowed $15,000 using the machine as collateral.Both notes are nonrecourse.Eight years later,the machine has an adjusted basis of zero and two outstanding note balances of $30,000 and $6,000.Pedro sells the machine subject to the two liabilities for $21,000.What is his realized gain or loss?
A)$0.
B)$21,000.
C)$51,000.
D)$57,000.
E)None of the above.

Pedro Borrowed $45,000 to Purchase a Machine