Sally Acquired an Apartment Building in 1998 for $150,000 and Sold

question 58

Multiple Choice

Sally acquired an apartment building in 1998 for $150,000 and sold it for $400,000 in 2013.At the time of the sale,there is $55,000 of accumulated straight-line depreciation on the apartment building.Assuming Sally is in the 35 percent tax bracket for ordinary income,how much of her gain is taxed at 15 percent?

• A)None
• B)$55,000
• C)$250,000
• D)$305,000
• E)$400,000

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