In 2001, ABC Corporation purchased a building and land for their manufacturing plant at a cost of $2,500,000. In 2021, ABC sold the land and building in 2021 for $3,000,000. Over this twenty year period, ABC had taken $1,025,641 of depreciation on the building (straight-line using a 39 year life).

a. What is the total amount of gain (or loss) that ABC must recognize on the sale of this asset?

b. What is the character of this gain (or loss) to ABC Corporation?

c. Assume that in 2021, ABC Corporation had $5,000,000 of operating income in addition to the sale of this building. Note: the sale of this building was the only capital transaction that ABC had in 2021. How much tax ABC will owe for federal income tax in 2021.

d. In 2022, ABC Corporation had a net long-term capital loss (NLTCL) of $1,500,000. ABC did not have any capital gains (or losses) in 2018, 2019, or 2020. Determine the tax consequences to ABC Corporation in 2022 as a result of the NLTCL of $1,500,000. Be specific.