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:

Formation

The process of being formed, or the structure and arrangement of something.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and help people understand the difference between right and wrong, often serving as a company's or individual’s ethical compass.

Company's Values

The core principles and ethical standards that guide the behavior, decisions, and actions within a business organization.

Values Education

The educational process by which individuals develop moral and ethical values.