Barnett Corporation Owns an Office Building That Cost $900,000

question 24

Multiple Choice

Barnett Corporation owns an office building that cost $900,000. Barnett has taken $600,000 of depreciation on the building. The property is subject to a $600,000 mortgage. The office building has a current FMV of $400,000. Barnett Corporation is liquidated and the office building is distributed to a single individual shareholder who assumes the mortgage. Barnett Corporation must recognize

• A)no gain or loss.
• B)a $100,000 gain.
• C)a $300,000 gain.
• D)none of the above

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Definitions:

Business World

Refers to the global commercial environment, encompassing all aspects of professional interaction and trade.

Training Method

A systematic plan or process for enhancing the knowledge, skills, and abilities of individuals or groups, often aimed at improving performance in a specific context or role.

Unconditional Positive Regard

An accepting and non-judgmental attitude towards others, regardless of their behavior or beliefs.

Conditional Positive Regard

Acceptance and love received from others that is dependent on one's behavior meeting certain conditions or expectations.