Octet Corporation Placed a Small Storage Building in Service in 1999.Octet's

question 49

Multiple Choice

Octet Corporation placed a small storage building in service in 1999.Octet's original cost for the building is $800,000 and the cost recovery deductions are $300,000.This year the building is sold for $1,100,000. The amount and character of the gain are

• A)Ordinary gain of $60,000 and Sec.1231 gain of $540,000.
• B)Ordinary gain of $300,000 and Sec.1231 gain of $300,000.
• C)Ordinary gain of $600,000.
• D)Sec.1231 gain of $600,000.

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Definitions:

Applicability

The relevance or suitability of something for a particular purpose or in a specific context.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Independent Variable

In an experiment, it is the variable that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured, expected to change as a result of manipulations in the independent variable.