Emily,whose Tax Rate Is 28%,owns an Office Building Which She

question 22

Multiple Choice

Emily,whose tax rate is 28%,owns an office building which she purchased for $900,000 on March 18 of last year.The building is sold for $950,000 on February 20 of this year when the adjusted basis of the building was $876,000.The tax results to Emily are

• A)$74,000 1231 gain taxed at 15%.
• B)$74,000 ordinary income taxed at 28%.
• C)$24,000 1250 unrecaptured gain taxed at 25% and $50,000 1231 gain taxed at 15%.
• D)$24,000 1231 gain taxed at 15% and $50,000 ordinary income taxed at 28%.

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Definitions:

ABAB Design

A type of experimental design in behavioral science research involving two phases (A and B), where A represents a baseline period and B represents an intervention period.

Exercise Program

A regimen or schedule of physical activities designed specifically for achieving individual fitness goals.

Depression

A mental condition characterized by enduring sadness or an absence of interest in normal activities, significantly encumbering day-to-day tasks.

Baseline Data

Initial set of data collected at the beginning of a study or project, used as a reference point for comparing future data.