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:

Hans Selye

A Hungarian-Canadian endocrinologist who is recognized for his research on the effects of stress on the human body and for developing the concept of the General Adaptation Syndrome.

Chronic Hypertension

A condition where an individual has persistently high blood pressure over a long period, often leading to health complications.

Exhaustion Phase

The final stage of the body's response to prolonged stress, characterized by depleted energy reserves and diminished resistance to illness.

Chronic Stress Phase

A prolonged period of stress without adequate relief, leading to various physical and psychological health issues.