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[13] Karey bought a small shopping mall on July 15, Year 1, for a total price of $2,340,000. Karey used straight-line depreciation and deducted $565,000

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[13] Karey bought a small shopping mall on July 15, Year 1, for a total price of $2,340,000. Karey used straight-line depreciation and deducted $565,000 before the mall was sold for $2.5 million on December 31, Year 10. The gain on the sale should be reported as A. $565,000 ordinary income and $160,000 Sec. 1231 gain. B. $160,000 capital gain. C. $725,000 Sec. 1231 gain. D. $725,000 ordinary income

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