Shanstella Bought a 4-Unit Apartment Building in July 2005 for $360,000

question 65

Multiple Choice

Shanstella bought a 4-unit apartment building in July 2005 for $360,000 and sold it for $480,000 in 2014.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:

Goal-Sharing

A strategy where organizational goals are communicated to employees, ensuring that everyone understands their role in achieving these objectives, often linked to performance and incentives.

Gain-Sharing Plans

Incentive plans that reward employees for contributing to the company's efficiency and productivity improvements by sharing the resulting financial gains.

Profit-Sharing Plans

An incentive plan in which employees receive a portion of the company's profits, typically allocated based on the company's earnings over a set period.

Deferred Plan

A type of savings plan that allows employees to defer a portion of their income to a later date, typically used for retirement savings.