In the Current Year, Tim Sells Section 1245 Property for $28,000

question 96

Multiple Choice

In the current year, Tim sells Section 1245 property for $28,000 that he had purchased 6 years ago. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income?

• A)$7,000
• B)$8,000
• C)$13,000
• D)$18,000
• E)None of the above is correct

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Definitions:

Buffers

Chemical substances that help maintain the stability of pH levels in solutions by neutralizing the effects of acids and bases.

Covalent Bonds

Chemical connections where two atoms share electrons mutually, contributing to the formation and structure of molecules.

Polarity

Separation of charge into distinct positive and negative regions.

Electronegativity

Measure of the ability of an atom to pull electrons away from other atoms.