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%.

---

Definitions:

Prehospital Orders

Directives given by healthcare professionals that outline specific interventions or treatments to be administered by emergency medical services before a patient reaches a hospital.

Grief

The emotional response to loss or bereavement, characterized by feelings of sadness, anger, guilt, and a range of other emotions.

Support Network

A group of individuals who provide emotional, informational, and practical support, often crucial during recovery or challenging life events.

Acknowledge Loss

The act of recognizing and accepting the fact of a loss, which could be emotional, financial, or physical.