Trudo Corporation Has a Building That It Needs to Sell

question 5

Multiple Choice

Trudo Corporation has a building that it needs to sell or exchange because of growth in its business. If Trudo sells the building, it will have a gain of $450,000. What is the amount of taxes that Trudi will avoid paying if it can exchange the building? The corporation has $1,000,000 of taxable income from operations for the current year.

• A) $90,000
• B) $153,000
• C) $175,500
• D) $450,000

---

Definitions:

Privacy Rights

Legal entitlements related to the protection of personal information from unauthorized access, use, or disclosure.

Fundamental Right

A basic human right recognized by a legal system that is protected from governmental infringement.

Substantive Due Process

A legal doctrine that protects certain fundamental rights from government interference, asserting that laws infringing on these rights must be justified by a compelling interest.

Broad Language

The use of words in a statute, contract, or any legal document that are open to interpretation due to their general, unspecific nature.