K Sold a Building (Held Seven Years and Depreciated Using

question 14

Multiple Choice

K sold a building (held seven years and depreciated using an accelerated method) at a gain of $12,000 during the current year.The depreciation allowed was $45,000 and the straight line depreciation would have been $39,500.Which of the following is not true?

• A)K has § 1250 recapture of $5,500.
• B)K has unrecaptured § 1250 gain of $6,500.
• C)K has § 1231 gain of $6,500.
• D)K's § 1231 gain qualifies for the 15 percent capital gain rate.

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