Betty inherited a building from her great aunt who depreciated the building using straight line depreciation. The FMV on the date of Betty's aunt's death was $125,000. Betty never used the building for personal purposes. After Betty inherited the building, she noticed a window was broken. She had the whole window replaced, which cost $1,300. Betty recently sold the building for $113,500. What is the amount of the gain/loss, and how should Betty report the gain/loss from the sale?
a) Betty is not required to report the gain from the sale of a personal asset.
b) Betty should report $113,500 as a gain on Form 8949 and on Schedule D.
c) Betty should report $125,000 on Form 1040, line 8.
d) Betty should report the $12,800 loss on Form 4797.