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36) Chad sold a rental house that he owned for $250,000. Chad bought the rental house five years ago for $225,000 and has claimed $50,000
36) Chad sold a rental house that he owned for $250,000. Chad bought the rental house five years ago for $225,000 and has claimed $50,000 of depreciation expense. What is the amount and character of Brad's gain or loss?
A) $25,000 ordinary and $50,000 unrecaptured 1250 gain.
B) $25,000 1231 gain and $50,000 unrecaptured 1250 gain. C) $75,000 ordinary gain.
D) $75,000 capital gain.
E) None of the choices are correct.
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