Jeffery, the owner of a remodeling company and a sole proprietor, sold a commercial building he used in his business. He acquired the building on February 15, 2016 for $420,000 and sold it December 30, 2016, for $480,000. Jeffery had taken $41,294 in depreciation. Assume Jeffery is in the 39.6% tax bracket.

a. Determine the adjusted basis of the building.

b.what is the amount gain on the sale of the building?

c. how much gain is considered unrecaptured

d. At what tax rate is the gain or loss taxed?