Clarise Bought a Building Three Years Ago for $180,000 to Use

question 71

Multiple Choice

Clarise bought a building three years ago for $180,000 to use in her business.The straight-line method of depreciation was used and $15,000 of depreciation deductions were allowed.During the current year,Clarise sells the building to her wholly owned corporation for $235,000.The tax results to Clarise are

• A)$70,000 ordinary income.
• B)$70,000 of Sec.1231 gain.
• C)$55,000 ordinary income and $15,000 Sec.1231 gain.
• D)$15,000 of ordinary income and $55,000 Sec.1231 gain.

---

Definitions:

Functional Structures

Functional structures group together people with similar skills who perform similar tasks.

Technical Expertise

Specialized knowledge or skills in a specific area of technology, often crucial for solving complex problems or creating innovative solutions.

Functional Departments

Distinct sections within an organization, each dedicated to a specific function or area of expertise such as marketing, finance, or human resources.

Mechanistic

An organizational structure characterized by rigid hierarchies, clear responsibilities, and centralized decision-making.