Alejandro Purchased a Building in 1985,which He Uses in His

question 56

Multiple Choice

Alejandro purchased a building in 1985,which he uses in his manufacturing business.Alejandro used the ACRS statutory rates to determine the cost-recovery deduction for the building.Alejandro's original cost for the building is $500,000 and cost-recovery deductions allowed are $500,000.If the building is sold for $800,000,the tax results to Alejandro are

• A)$500,000 Sec.1245 ordinary income and $300,000 Sec.1231 gain.
• B)$800,000 Sec.1245 ordinary income.
• C)$500,000 Sec.1245 ordinary income and $300,000 Sec.1250 income.
• D)$800,000 Sec.1231 gain.

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Definitions:

Unspecified Pathogen

A term used when the specific cause of an infection or disease is not identified or defined in a diagnostic process.

Acronym

A word formed from the initial letters of a name or by combining initial letters or parts of a series of words.

Severe Sepsis

Sepsis with signs of acute organ dysfunction.

Organ Dysfunction

A condition where an organ does not perform its expected function.