In 1980,Artima Corporation Purchased an Office Building for $400,000 for Use

question 110

Multiple Choice

In 1980,Artima Corporation purchased an office building for $400,000 for use in its business.The building is sold during the current year for $550,000.Total depreciation allowed for the building was $390,000;straight-line would have been $360,000.As result of the sale,how much section 1231 gain will Artima Corporation report?

• A)$150,000
• B)$398,000
• C)$510,000
• D)$540,000

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Definitions:

Letter Reports

Formal reports that are presented in a letter format, often used for short and direct communication of findings or recommendations.

Board Of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including corporate management and policy making.

Letter Of Transmittal

A formal document that accompanies a report, proposal, or other document, summarizing its key points or instructions for its use.

Formality Decreases

The process of making communication more casual, removing rigid structures or traditional formalities.