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:

Quality

The degree to which a project's deliverables meet the requirements and satisfy the needs for which they were intended, often assessed through quality control and assurance processes.

Normal Distributions

A type of statistical distribution where data is symmetrically distributed around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A statistical measure representing the dispersion or variability of a set of data points, indicating how much the individual data points deviate from the mean.

Measurements

Measurements are the process of obtaining quantitative data or observations of variables, typically using standardized instruments or methods, to assess, compare, or track performance or phenomena.