Eric Purchased a Building in 2003 That He Uses in His

question 9

Multiple Choice

Eric purchased a building in 2003 that he uses in his business.Eric uses the straight-line method for the building.Eric's original cost for the building is $420,000 and cost-recovery deductions are $120,000.Eric is in the top tax bracket and has never sold any other business assets. If the building is sold for $560,000,the tax results are

• A)$260,000 Sec.1231 gain,all taxable at 20%.
• B)$260,000 unrecaptured Sec.1250 gain,all taxable at 25%.
• C)$260,000 Sec.1231 gain,of which $120,000 is unrecaptured Sec.1250 gain taxable at 25% and the $140,000 balance is taxable at 20%.
• D)$120,000 Sec.1245 ordinary income,$140,000 Sec.1231 gain taxable at 20%.

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Definitions:

Button Order

The sequence or arrangement of buttons in a user interface, which can affect the usability and aesthetic of the interface.

Navigation Buttons

User interface elements that allow users to move through different screens, pages, or sections within a software application or website.

Object Dependencies

Refers to the relationship between objects where changes in one object might affect the other object, commonly found in databases and programming.

Form Layout

The arrangement and organization of elements within a form, such as fields, labels, and buttons, to ensure usability and capture necessary information.