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:

Energy Diagram

A graphical representation that shows the energy levels of the reactants, intermediates, and products in a chemical reaction.

Endothermic Reaction

A chemical reaction that absorbs energy from its surroundings, typically in the form of heat.

Catalyzed

A process in which the rate of a chemical reaction is increased by the presence of a catalyst, which remains unchanged by the reaction.

Heterogeneously Catalyzed

A reaction process aided by a catalyst that exists in a different phase than the reactants, usually solids catalyzing reactions in liquids or gases.