Emily,whose Tax Rate Is 32%,owns an Office Building Which She

question 62

Multiple Choice

Emily,whose tax rate is 32%,owns an office building which she purchased for $900,000 on March 18 of last year.The building is sold for $950,000 on February 20 of this year when the adjusted basis of the building was $876,000.The tax results to Emily are

• A)$74,000 1231 gain taxed at 15%.
• B)$74,000 ordinary income taxed at 32%.
• C)$24,000 1250 unrecaptured gain taxed at 25% and $50,000 1231 gain taxed at 15%.
• D)$24,000 1231 gain taxed at 15% and $50,000 ordinary income taxed at 32%.

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Definitions:

Network Firewall

A security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules.

Wireless Intranet

An internal network that uses wireless technology to enable employees to access information and applications without the need for wired connections.

Wi-Fi

Wireless network that connects various devices and allows them to communicate with one another through radio waves.