A Taxpayer Purchased a Factory Building in 1985 for $800,000

question 46

Multiple Choice

A taxpayer purchased a factory building in 1985 for $800,000.After claiming ACRS-accelerated depreciation of $800,000,she sells the asset for $1,000,000 during the current year.No payment is received during the current year,and the $1,000,000 balance to be paid with interest at the interest rate in four annual payments beginning one year from date of sale.The installment sales method is adopted.How much ordinary income is recognized in the current year?

• A)$0
• B)$200,000
• C)$800,000
• D)$1,000,000

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Definitions:

Experimental Procedures

A series of steps and methods designed in an experiment to test hypotheses by manipulating and controlling variables.

Experimental Situation

A controlled environment created to test hypotheses and examine the effects of manipulations on variables.

External Validity

The extent to which the results of a study can be generalized to or across populations, settings, times, and other external conditions.

Social Influence

The impact that individuals or groups have on changing the behavior, attitudes, or beliefs of others within a social context.