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:

Sentence Structure

The arrangement of words, phrases, and clauses in a sentence to convey meaning and intention effectively.

Complex Sentences

Sentences that contain one independent clause and at least one dependent clause, expressing more nuanced ideas.

Subordinate Clauses

Clauses that cannot stand alone as complete sentences and are dependent on a main clause to convey a complete thought.

Compound-complex

A sentence type that contains at least two independent clauses and one or more dependent clauses.