Philip Purchased an Apartment Building in 2001 for $1,000,000

question 8

Multiple Choice

Philip purchased an apartment building in 2001 for $1,000,000.During 2017,the building is sold for $800,000.The accumulated depreciation on the building as of the sale date was $300,000.What is the amount and character of the gain recognized on the sale?

• A)$100,000 Section 1250 ordinary income.
• B)$100,000 Section 1231 long term capital gain.
• C)$100,000 unrecaptured Section 1250 gain.
• D)$100,000 ordinary income.

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Definitions:

U.S. Health Care System

A complex organization of doctors, hospitals, insurance companies, and regulatory agencies providing health care services within the United States.

Financing Of Health Care

The methods and sources for funding the operation of healthcare systems and services.

Insurance

A financial product that provides protection against possible future losses or risks in exchange for a premium.

Overconsumed

A situation where goods or services are used in excess of what is considered sustainable or necessary, often leading to negative externalities such as pollution or resource depletion.