Barnett Corporation Owns an Office Building That Cost $900,000

question 24

Multiple Choice

Barnett Corporation owns an office building that cost $900,000. Barnett has taken $600,000 of depreciation on the building. The property is subject to a $600,000 mortgage. The office building has a current FMV of $400,000. Barnett Corporation is liquidated and the office building is distributed to a single individual shareholder who assumes the mortgage. Barnett Corporation must recognize

• A)no gain or loss.
• B)a $100,000 gain.
• C)a $300,000 gain.
• D)none of the above

---

Definitions:

Democrats

Members or supporters of the Democratic Party in the United States, one of the two major contemporary political parties, traditionally aligned with liberal policies and principles such as civil rights, social welfare, and labor rights.

Elections

The process through which individuals are selected for public office by voters, often through a democratic process involving casting ballots.

15th Amendment

An amendment to the U.S. Constitution, ratified in 1870, that granted African American men the right to vote by stating that the right of citizens to vote shall not be denied based on race, color, or previous condition of servitude.