41. Maria purchased a building in 2010 that she uses in her business. Maria uses the straight-line method for the building. Maria's original cost for the building is $420,000 and cost-recovery deductions are $120,000. Maria is in the top tax bracket and has never sold any other business assets. If the building is sold for $S60,000, the tax results are A) $260,000 See. 1231 gain, all taxable at 20%. B) $260,000 unrecaptured Sec. 1250 gain, all taxable at 25%. C) $260,000 Sec. 1231 gain, of which $120,000 is unrecaptured Sec. 1250 gain taxable at 25% and the $140,000 balance is taxable at 20%. D) $120,000 Sec. 1245 ordinary income, $140,000 Sec. 1231 gain taxable at 20%. 41. Maria purchased a building in 2010 that she uses in her business. Maria uses the straight-line method for the building. Maria's original cost for the building is $420,000 and cost-recovery deductions are $120,000. Maria is in the top tax bracket and has never sold any other business assets. If the building is sold for $S60,000, the tax results are A) $260,000 See. 1231 gain, all taxable at 20%. B) $260,000 unrecaptured Sec. 1250 gain, all taxable at 25%. C) $260,000 Sec. 1231 gain, of which $120,000 is unrecaptured Sec. 1250 gain taxable at 25% and the $140,000 balance is taxable at 20%. D) $120,000 Sec. 1245 ordinary income, $140,000 Sec. 1231 gain taxable at 20%