Octet Corporation Placed a Small Storage Building in Service 15

question 21

Multiple Choice

Octet Corporation placed a small storage building in service 15 years ago.Octet's original cost for the building is $800,000 and the cost recovery deductions are $300,000.This year the building is sold for $1,100,000.The amount and character of the gain are

• A)ordinary gain of $60,000 and Sec.1231 gain of $540,000.
• B)ordinary gain of $300,000 and Sec.1231 gain of $300,000.
• C)ordinary gain of $600,000.
• D)Sec.1231 gain of $600,000.

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Definitions:

Preconventional Morality

The first level of Lawrence Kohlberg's stages of moral development, where behavior is influenced by rewards and punishments.

Kohlberg

Lawrence Kohlberg was a renowned psychologist famous for developing the stages of moral development theory.

Teachers

Educators responsible for imparting knowledge, fostering understanding, and promoting intellectual growth among students.

Obey

To follow the commands, rules, or instructions given by someone in authority.