Pam Owns a Building Used in Her Trade or Business

question 32

Essay

Pam owns a building used in her trade or business that was placed into service in 2003.The building cost $450,000 and depreciation to date amounts to $200,000.Pam sells the building for $380,000.It is the only asset she sells this year,and she has no nonrecaptured Sec.1231 losses.What is the amount of recognized gain and the nature of the gain? How will the gain be taxed?

---

Definitions:

Postindustrial Economy

An economic phase characterized by the decline of manufacturing and the growth of services, information, and technology sectors, marking a shift from industrial-based to knowledge-based activities.

Deindustrialization

The transition from a predominantly goods-producing economy to one based on the provision of services.

Supreme Court

The Supreme Court is the highest judicial authority in a country, responsible for interpreting the constitution and laws, and making decisions that serve as legal precedents.

Military Academies

Educational institutions designed to train students for service in the armed forces.