In 1980, Mr

question 198

Multiple Choice

In 1980, Mr. Lyle purchased a factory building to use in business for $480,000. When Mr. Lyle sells the building for $580,000, he has taken depreciation of $470,000. Straight- line depreciation would have been $400,000. Mr. Lyle must report

• A) $70,000 of ordinary income and $500,000 of Sec. 1231 gain.
• B) $570,000 of ordinary gain.
• C) $470,000 of ordinary gain and $100,000 of Sec. 1231 gain.
• D) $570,000 of Sec. 1231 gain.

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Definitions:

School Ability Tests

Group intelligence tests administered in a school setting.

Cognitive Abilities Test

A standardized assessment used to measure an individual's mental capabilities in areas such as problem-solving, memory, and reasoning.

Cattell's Original Theory

A theory of personality that includes a trait model of personality, emphasizing fluid and crystallized intelligence as key components.

Gf

General fluid intelligence, the capacity to reason and solve novel problems, independent of any knowledge from the past.