A partnership has the following assets and liabilities. The book basis and tax basis are the same amount.

Building: Basis $90,000 Value $92,000

Accounts payable: Basis $8,000 Value $8,000

Note payable: Basis $85,000 Value $85,000

If the note payable is a nonrecourse mortgage on the building, what is the amount of the minimum gain?

$0

$1,000

$2,000

$3,000