MrAnd MrsMarley Operate a Small Business

question 75

Multiple Choice

Mr.and Mrs.Marley operate a small business.This year,the Marleys sold a commercial office building used in their business for $1.1 million.They purchased the building in 2003 for a cost of $900,000 and have deducted $300,000 MACRS depreciation through date of sale.The Marleys should characterize the $500,000 gain recognized on sale as:

• A)Capital gain
• B)Section 1231 gain
• C)$300,000 ordinary gain and $200,000 Section 1231 gain
• D)None of the above

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Definitions:

Open-ended Questions

Questions formulated to encourage a full, meaningful answer using the respondent's own knowledge and/or feelings.

LGBT Family

A family unit that includes members who identify as lesbian, gay, bisexual, or transgender.

Gender Identities

The various ways in which people identify themselves in relation to the concept of gender, beyond the binary norms of male and female.

Heterosexual Families

Families in which the adults in a parenting role are of different sexes, traditionally recognized as a male-female couple.