Octet Corporation Placed a Small Storage Building in Service in 2002

question 1013

Multiple Choice

Octet Corporation placed a small storage building in service in 2002. 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 $600,000.
• C) ordinary gain of $300,000 and Sec. 1231 gain of $300,000.
• D) Sec. 1231 gain of $600,000.

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Definitions:

Synapse

Region where a neuron’s axon terminals transmit signaling molecules (neurotransmitter) to another cell.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Myelin Sheath

A fatty layer that encases the axons of some neurons, which increases the speed at which electrical impulses are conducted.

Sodium-Potassium Pumps

Membrane proteins that pump sodium ions out of cells and potassium ions into cells, playing a key role in maintaining cell potential.