When a depreciable property of historical cost of 2,000,000 with accumulated depreciation of $600,000, was disposed for a net selling price of $3,000,00, the realized gain of $1,600,000 will be taxed as follows:

1. $1,600,000 under the LT capital gain rules
2. $1,000,000 under the LT capital gain rules but the $600,000 accumulated depreciation, is not taxable
3. $1,000,000 under the LT capital gain rules and $600,000 under the depreciation recapture rules
4. $ 600,000 under the LT capital gain rules and $1,000,000 will be deferred.

6. When a depreciable property of historical cost of 2,000,000 with accumulated depreciation of $600,000, was disposed for a net selling price of $3,000,00, the realized gain of $1,600,000 will be taxed as follows: a. $1,600,000 under the LT capital gain rules b. $1,000,000 under the LT capital gain rules but the $600,000 accumulated depreciation, is not taxable c. $1,000,000 under the LT capital gain rules and $600,000 under the depreciation recapture rules d. $600,000 under the LT capital gain rules and $1,000,000 will be deferred