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

question 11

Multiple Choice

Alejandro purchased a building in 1985,which he uses in his manufacturing business.Alejandro uses the ACRS statutory rates to determine the cost-recovery deduction for the building.Alejandro's original cost for the building is $500,000 and cost-recovery deductions allowed are $500,000.If the building is sold for $800,000,the tax results to Alejandro are

• A)$500,000 Sec.1245 ordinary income and $300,000 Sec.1231 gain.
• B)$800,000 Sec.1245 ordinary income.
• C)$500,000 Sec.1245 ordinary income and $300,000 Sec.1250 income.
• D)$800,000 Sec.1231 gain.

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Definitions:

Need for Affiliation

A person's inherent desire to feel connected or involved with social groups or relationships.

Constructively Criticize

The act of offering valid and well-reasoned opinions about the work of others, usually involving both positive and negative comments, in a friendly manner rather than an oppositional one.

Stimulus Motives

Needs, desires, or impulses that prompt behaviors aimed at seeking external stimuli to satisfy internal psychological states.

Developmental Motives

The driving forces behind the psychological changes and growth that occur over a person's lifetime.