Octet Corporation Placed a Small Storage Building in Service in 2001.Octet's

question 49

Multiple Choice

Octet Corporation placed a small storage building in service in 2001.Octet's original cost for the building is $800,000 and the cost recovery deductions are $300,000.This year the building is sold for $1,100,000.The amount and character of the gain are

• A)ordinary gain of $60,000 and Sec.1231 gain of $540,000.
• B)ordinary gain of $300,000 and Sec.1231 gain of $300,000.
• C)ordinary gain of $600,000.
• D)Sec.1231 gain of $600,000.

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Definitions:

Hyperpolarization

A change in a cell's membrane potential that makes it more negative, moving further away from zero, which decreases the likelihood of generating an action potential.

Sodium

A chemical element, represented by the symbol Na, that plays critical roles in the body, including maintaining fluid balance and conducting nerve impulses.

Synaptic Cleft

The tiny gap between neurons at a synapse, through which neurotransmitters are released to transmit signals from one neuron to another.

Dendrites

The branched extensions of a neuron that receive signals from other neurons or sensory stimuli and transmit them toward the cell body.