A Retail Building Used in the Business of a Sole

question 62

Multiple Choice

A retail building used in the business of a sole proprietor is sold on March 10, 2012, for $342,000. The building was acquired in 2002 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 the above.

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Definitions:

Classical Economic

An economic theory originating in the 18th century that advocates for free markets, competition, and the idea that an invisible hand guides supply and demand.

Neo-Capitalist

A modern version of capitalism that incorporates elements of social progress within the free market system for broader economic development.

Small Business

An independently owned and operated company that is limited in size and revenue depending on the industry.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.