Question
A corporation owns an office building and land. The office building and land were acquired in 1978 for $1,100,000 and $80,000, respectively. During the current
A corporation owns an office building and land. The office building and land were acquired in 1978 for $1,100,000 and $80,000, respectively. During the current year, the properties are sold for $1,180,000 with 40% of the selling price being allocated to the land. The assets as shown on the corporation's books before their sale are as follows:
Building $1,100,000
Accumulated depreciation 980,000(a) $120,000
Land 80,000
(a) If the straight-line method of depreciation had been used, the accumulated depreciation would be $860,000.
A. What is the recognized gain due to the sale of the building?
B.
ANSWER BOTH CORRECTLY AND I WILL RATE YOU HIGHLY THANKS!
Requirement b. What is the character of the recognized gain due to the sale of the building? (Enter a "0" for any zero balances.) Of the recognized gain from Parta, $ is Sec. 1250 ordinary income and $ is Sec. 1231 gainStep by Step Solution
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