A Retail Building Used in the Business of a Sole

question 62

Multiple Choice

A retail building used in the business of a sole proprietor is sold on March 10, 2019, for $342,000.The building was acquired in 2009 for $400,000 and straight-line depreciation of $104,000 had been taken on it.What is the maximum unrecaptured § 1250 gain from the disposition of this building?

• A)$400,000
• B)$322,000
• C)$104,000
• D)$26,000
• E)None of these.

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Definitions:

Cash

Money in the form of coins or banknotes, especially that owned by a person or organization.

Buyer Returns

Goods returned by the buyer to the seller due to defects, dissatisfaction, or other reasons, impacting the seller's revenue and inventory levels.

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Refers to the goods a company intends to sell to customers that are purchased from suppliers or manufactured.