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Lemon Corporation purchased a building in 1980 for $900,000. During 2018, the building was sold for $700,000 when the accumulated depreciation was $600,00Q (SL would
Lemon Corporation purchased a building in 1980 for $900,000. During 2018, the building was sold for $700,000 when the accumulated depreciation was $600,00Q (SL would have been $440,000). What is the amount and character of gain recognized on the sale?
Ordinary Income Sec. 1231
a. $248,000 $152,000
b. $160,000 $240,000
c. $400,000 $ 0
d. $208,000 $192,000
e. None of the above.
(The answer is D so please provide the work and an explanation)
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