Octet Corporation Placed a Small Storage Building in Service in 2000.Octet's

question 111

Multiple Choice

Octet Corporation placed a small storage building in service in 2000.Octet's original cost for the building is $800,000 and the cost recovery deductions are $300,000.This year the building is sold for $1,100,000.The amount and character of the gain are

• A)Ordinary gain of $60,000 and Sec.1231 gain of $540,000.
• B)Ordinary gain of $300,000 and Sec.1231 gain of $300,000.
• C)Ordinary gain of $600,000.
• D)Sec.1231 gain of $600,000.

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Definitions:

Declaration Date

The specific date on which a company announces an upcoming dividend payment.

Board of Directors

A group of individuals elected by shareholders to oversee the activities and governance of a company.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash payments or additional shares.