Otis Bought a 2-Unit Apartment Building in July 2010 for $330,000

question 92

Multiple Choice

Otis bought a 2-unit apartment building in July 2010 for $330,000 and sold it for $400,000 on December 20,2017.At the time of sale there was $83,493 of accumulated straight-line depreciation on the apartment building.Assuming Otis is in the 33% tax bracket,how much of the gain will be taxed at 25%?

• A)$0.
• B)$70,000.
• C)$83,493.
• D)$153,493.

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Definitions:

Social Psychology

The scientific study of how individuals think, feel, and behave in the context of social interactions and how they are influenced by the actual or implied presence of others.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, indicating how much the survey results may deviate from the actual population values.

Construct Validity

The degree to which a test measures what it claims to measure, reflecting the accuracy of the concept being evaluated.