A Retail Building Used in the Business of a Sole

question 8

Multiple Choice

A retail building used in the business of a sole proprietor is sold on March 10,2014,for $342,000.The building was acquired in 2004 for $400,000 and straight-line depreciation of $104,000 had been taken on the building.What is the maximum unrecaptured § 1250 gain from the disposition of this building?

• A)$400,000
• B)$322,000
• C)$104,000
• D)$26,000
• E)None of these

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Definitions:

Joint

A fracture or separation in rock in which there has been no significant movement of the sides relative to one another.

Geologic Processes

The natural mechanisms through which Earth's surface is shaped and changed over time, including erosion, sedimentation, and tectonic movements.

James Hutton

Often referred to as the "Father of Modern Geology," he was an 18th-century Scottish scientist who proposed the principle of uniformitarianism.

Siccar Point

Siccar Point is a prominent geological site in Scotland known for its angular unconformity between older, tilted layers of rock and younger, horizontal layers.