C Sold a House Held for Rental Purposes for $40,000

question 4

Multiple Choice

C sold a house held for rental purposes for $40,000, recognizing § 1250 recapture of $3,000 and § 1231 gain of $5,000.Which of the following is not necessarily true?

• A)The basis of the property was $32,000.
• B)The depreciation allowed was $3,000 greater than straight-line depreciation would have been.
• C)The total depreciation allowed was $8,000.
• D)None of the above statements is necessarily true from these limited facts.

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Definitions:

Nonprogrammed Decisions

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Nonprogrammed Decisions

Decisions that are unique, require specific solutions, and are not based on established guidelines or procedures.

Standardized Responses

Preset or uniform reactions or answers to specific stimuli or situations, often used to ensure consistency and efficiency.

Recurring Situations

Events or conditions that happen repeatedly over time in a predictable pattern or sequence.