Shanstella Bought a 4-Unit Apartment Building in July 2008 for $360,000

question 19

Multiple Choice

Shanstella bought a 4-unit apartment building in July 2008 for $360,000 and sold it for $480,000 in 2017.There was $96,541 of accumulated straight-line depreciation on the apartment building.Assuming that Shanstella is in the 33% tax bracket,how much of her gain is taxed at 25%?

• A)$0.
• B)$96,541.
• C)$120,000.
• D)$216,541.

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Definitions:

Understandability

Understandability in accounting means financial information should be presented clearly and concisely, making it easy for users to comprehend.

Conceptual Framework

An underlying structure in various fields that outlines principles and concepts for systematic study or analysis.

Publicly Traded

A company whose shares are bought and sold on stock exchanges, allowing investors to own a part of the company.

Private Companies

Businesses whose ownership is private and shares are not traded on public stock exchanges.