A Retail Building Used in the Business of a Sole

question 58

Multiple Choice

A retail building used in the business of a sole proprietor is sold on March 10,2016,for $342,000.The building was acquired in 2006 for $400,000 and straight-line depreciation of $104,000 had been taken on the building.What is the maximum unrecaptured § 1250 gain from the disposition of this building?

• A)$400,000
• B)$322,000
• C)$104,000
• D)$26,000
• E)None of the above

---

Definitions:

Consistent System

A system where all parts work together without contradiction, ensuring stability and predictability in its operations.

Preferences

Individual likes or choices that guide behavior and decision-making, often influenced by personal experiences, cultural factors, and biological predispositions.

Nonprogrammed Decision

Decisions made in response to situations that are unique, poorly defined, and largely unstructured.

Standard Operating Procedure

A set of written instructions that document a routine or repetitive activity followed by an organization.