Booth Corporation Sells a Building Classified as a Residential Rental

question 15

Multiple Choice

Booth Corporation sells a building classified as a residential rental property for $200,000. The MACRS straight-line depreciation taken is $20,000 and the adjusted basis of the building is $170,000. Booth Corporation must recognize ordinary income of

• A)$30,000.
• B)$20,000.
• C)$4,000.
• D)$0.

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Definitions:

Cerebellum

A region of the brain located at the back of the skull, crucial for motor control, coordination, precision, and timing of movements.

Kwashiorkor

A severe form of malnutrition caused by insufficient protein intake, characterized by swelling, an enlarged liver, and other health issues.

Marasmus

A severe form of malnutrition caused by a significant deficiency of calories and proteins, characterized by weight loss and muscle wasting.

Muscular Dystrophy

A group of genetic disorders that lead to progressive weakness and loss of muscle mass due to abnormalities in the proteins needed for healthy muscle function.