Otis Bought a 2-Unit Apartment Building in July 2007 for $330,000

question 77

Multiple Choice

Otis bought a 2-unit apartment building in July 2007 for $330,000 and sold it for $400,000 on December 20,2014.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:

Marginal Product

The extra output that is produced by using one more unit of a variable input, holding other inputs constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Supply of Labor

The total hours that workers are willing and able to work at a given wage rate, in a given time period.

Net Migration

The difference between the number of individuals entering and leaving a geographic area during a specific time period, which can impact population size and composition.