Question
A.) Jack sold a building (cost $4,900,000; accumulated depreciation $1,500,000) for $5,200,000. The building was placed in service in 2008. What is the amount of
A.) Jack sold a building (cost $4,900,000; accumulated depreciation $1,500,000) for $5,200,000. The building was placed in service in 2008. What is the amount of Sec. 1231 (25%)/Sec. 1231 (15%) gain, respectively?
1. $ 300,000/$1,500,000
2. $1,500,000/$ 300,000
3. $ 0/$1,800,000
4. None of the answers provided are correct.
5. $1,800,000/$ 0
B) Lemon Corporation purchased a building in 1980 for $1,200,000. During 2019, the building was sold for $820,000 when the accumulated depreciation was $700,000 (SL would have been $650,000). What is the amount of ordinary income/Sec. 1231 gain recognized on the sale?
1. $ 50,000/$270,000
2. None of the answers provided are correct?
3. $ 54,000/$266,000
4. $320,000/$ 0
5. $104,000/$216,000
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