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A property is sold at $950,000. The book value is $ 750,000. The owner spent $100,000 on capital expenditure before sale. Depreciation is $10,000. What
A property is sold at $950,000. The book value is $ 750,000. The owner spent $100,000 on capital expenditure before sale. Depreciation is $10,000. What is the tax due on sale for this property (capital gain tax=15%, recapture tax=25%)? Select one: a. $25,000 O b. $17,500 O c. $15,000 O d. $27,500
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