Clarise Bought a Building Three Years Ago for $180,000 to Use

question 71

Multiple Choice

Clarise bought a building three years ago for $180,000 to use in her business.The straight-line method of depreciation was used and $15,000 of depreciation deductions were allowed.During the current year,Clarise sells the building to her wholly owned corporation for $235,000.The tax results to Clarise are

• A)$70,000 ordinary income.
• B)$70,000 of Sec.1231 gain.
• C)$55,000 ordinary income and $15,000 Sec.1231 gain.
• D)$15,000 of ordinary income and $55,000 Sec.1231 gain.

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Definitions:

Achievement Goal Theory

A theory that focuses on how individuals are motivated by their goals, specifically in achievement settings like school and sports.

Mastery and Performance

Concepts related to the orientation of individuals towards learning, where mastery focuses on developing competence and understanding, while performance emphasizes displaying competence and comparing oneself with others.

Approach and Avoidance

Psychological concepts referring to individuals' tendencies to move towards or away from specific stimuli or situations based on perceived outcomes.

Academic Self-concept

An individual's perceptions and beliefs about their own academic abilities and potential, which can influence motivation, engagement, and performance in educational settings.