7. Beige Corporation, a C corporation, purchases a warehouse on August 1, 2002, for $1 million. Straight-line depreciation is taken in the amount of $611,750 before the property is sold on June 12, 2018, for $1.4 million. What is the amount and character of the gain recognized by Beige on the sale of the realty?

8. During the current year, Coyote Corporation (a calendar year C corporation) has the following transactions:

Income from operations	$260,000
Expenses from operations	305,000
Dividends from Roadrunner Corporation	115,000

a. Coyote owns 5% of Roadrunner Corporations stock. How much is Coyote

Corporations taxable income (loss) for the year?

b. Would your answer change if Coyote owned 25% of Roadrunner Corporations

stock?