Philip Purchased an Apartment Building in 1997 for $1,000,000

question 29

Multiple Choice

Philip purchased an apartment building in 1997 for $1,000,000. During 2014, the building is sold for $800,000. The accumulated depreciation on the building as of the sale date was $300,000. What is the amount and character of the gain recognized on the sale?

• A) $100,000 Section 1250 ordinary income.
• B) $100,000 Section 1231 long term capital gain.
• C) $100,000 unrecaptured Section 1250 gain.
• D) $100,000 ordinary income.

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Definitions:

Receptive Care

Care practices that involve actively listening and responding to the needs and preferences of patients.

Thoracentesis

A medical procedure involving the insertion of a needle through the chest wall to remove fluid from the pleural space for diagnostic or therapeutic purposes.

Encouragement

The act of providing support, confidence, or hope to someone.

Task-oriented Touch

A therapeutic method where touch is used purposefully to complete specific tasks or objectives in patient care.