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:

Fasting

A practice of voluntarily abstaining from all or some kinds of food or drink, usually for a specific period of time, often practiced for religious, health, or medical reasons.

Nausea

A feeling of sickness with an inclination to vomit, often a symptom of other conditions or side effects of medication.

Vomiting

The forceful expulsion of stomach contents through the mouth, which can be a symptom of various conditions or diseases.

Surgical Procedures

Medical operations involving an incision with instruments, typically performed to repair damage or remove diseased tissue.