In the Current Year, Tim Sells Section 1245 Property for $28,000

question 96

Multiple Choice

In the current year, Tim sells Section 1245 property for $28,000 that he had purchased 6 years ago. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income?

• A)$7,000
• B)$8,000
• C)$13,000
• D)$18,000
• E)None of the above is correct

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Definitions:

Protective Optimism

The belief that positive outcomes are more likely than negative ones, often leading individuals to take preventive actions.

Emotional Regulation

The process through which individuals influence their own emotions, how they experience and express them.

Positive Accomplishments

Achievements or successes that have a beneficial impact on an individual's life or the lives of others.

Erikson's Theory

A developmental theory by Erik Erikson that outlines eight stages of psychosocial development from infancy to late adulthood, each characterized by a specific conflict.