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Mr. Briggs purchased an apartment complex on January 10, 2014 for $2 million with 10% of the price allocated to land. He sells the complex
| Mr. Briggs purchased an apartment complex on January 10, 2014 for $2 million with 10% of the price allocated to land. He sells the complex on Ocotbe 22, 2016 for $2.5 miilion . Assume that 10% of the $2.5 Million selling price is allocated to land and 90% is allocated tothe building. | |
| a. How much depreciation was allowed for 2014? | |
| b. How much depreciation is allowed for 2016? | |
| c. Will any of the gain be ordinary income? | |
| d. What is the amount of gain and the character fo thegain on the sale of the building? | |
| e. What is the amount of gain and the character of the gain on the sale of the land? | |
| f. Will any of the gain be taxed at 25%? |
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Payroll Accounting
Authors: Bernard J Bieg, Judith A Toland
29th Edition
1337673196, 9781337673198
