A Taxpayer Purchased a Factory Building in 1985 for $800,000

question 46

Multiple Choice

A taxpayer purchased a factory building in 1985 for $800,000.After claiming ACRS-accelerated depreciation of $800,000,she sells the asset for $1,000,000 during the current year.No payment is received during the current year,and the $1,000,000 balance to be paid with interest at the interest rate in four annual payments beginning one year from date of sale.The installment sales method is adopted.How much ordinary income is recognized in the current year?

• A)$0
• B)$200,000
• C)$800,000
• D)$1,000,000

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Definitions:

Malcolm Baldrige

Namesake of the Malcolm Baldrige National Quality Award, recognizing U.S. organizations for performance excellence.

National Quality Award

An accolade given to organizations that demonstrate outstanding quality management and operational excellence.

Human Resource Information System

An integrated system used to gather, store, and analyze information regarding an organization's human resources.

Decision Making

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