Beige Corporation,a C Corporation,purchases a Warehouse on August 1,1999,for $1

question 58

Multiple Choice

Beige Corporation,a C corporation,purchases a warehouse on August 1,1999,for $1 million.Straight-line depreciation is taken in the amount of $411,750 before the property is sold on June 11,2015,for $1.2 million.What is the amount and character of the gain recognized by Beige on the sale of the realty?

• A)Ordinary income of $0 and § 1231 gain of $611,750.
• B)Ordinary income of $411,750 and § 1231 gain of $200,000.
• C)Ordinary income of $82,350 and § 1231 gain of $529,400.
• D)Ordinary income of $117,650 and § 1231 gain of $494,100.
• E)None of the above.

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Definitions:

Code-Switching

The practice of alternating between two or more languages or varieties of language in conversation.

Mezzanine Level

A intermediate floor or level between the main floors of a building, often partially open to the floor below and used for a variety of purposes.

Social Structure

The organized pattern of social relationships and social institutions that together compose society.

Intersecting Identities

The theory that individuals have multiple identities that intersect and interact, contributing to unique experiences of privilege and oppression.