19. On October 1, 1980, a taxpayer purchased a building for $250,000 with an estimated useful life of 40 years for business purposes. On October 2, 2021, the taxpayer sold the building for $200,000. How much and what type of gain will the taxpayer recognize on the sale? a. b. c. $100,000 taxed as ordinary income and $100,000 taxed at a maximum rate of 25% $250,000 taxed as ordinary income $100,000 taxed as capital gain and $100,000 taxed as ordinary income d. $200,000 taxed as ordinary income c. $200,000 taxed at a maximum rate of 25% 20. A calendar-year taxpayer had net Section 1231 losses of $10,000 in 2019 and net Section 1231 gains of $7,500 and $5,750 in 2020 and 2021, respectively. There were no net Section 1231 losses in years prior to 2019. How is the net Section 1231 gain in 2021 reported on the tax return? a. b. C. d. c. $5,750 is reported as ordinary income and $0 is reported as LTCG. $2,500 is reported as ordinary income and $3,250 is reported as LTCG. $5,750 is reported as LTCG and $2,500 is reported as ordinary income. $2,500 is reported as LTCG and $3,250 is reported as ordinary income. $0 is reported as ordinary income and $5,750 is reported as LTCG. 21. If a taxpayer accomplishes a like-kind exchange instead of selling an asset, the taxpayer can avoid the higher rates of taxation that would occur if the asset were sold instead of exchanged. In 2022, a 32 percent bracket single taxpayer can be taxed on long-term capital gains (held more than 12 months) up to a rate of: a. 32% b. 28% C. 20% d. 15% e. 10% 7