Ross Purchased a Building in 1985,which He Uses in His

question 25

Multiple Choice

Ross purchased a building in 1985,which he uses in his manufacturing business.Ross uses the ACRS statutory rates to determine the cost-recovery deduction for the building.Ross's original cost for the building is $500,000 and cost-recovery deductions allowed are $500,000.If the building is sold for $340,000,the tax results to Ross are

• A)$340,000 LTCG.
• B)$340,000 Sec.1231 gain.
• C)$340,000 Sec.1245 ordinary income.
• D)$340,000 Sec.1250 ordinary income.

---

Definitions:

Approximate

To approximate means to find a value close to the exact answer, often through estimation or rounding.

Real Number

A value that represents a quantity along a continuous line, including both rational and irrational numbers.

True Inequality

A true inequality is an inequality statement that accurately describes the relationship between two values or expressions based on the given conditions.

Real Number

A value that represents a quantity along a continuous line, including all rational and irrational numbers.