Philip Purchased an Apartment Building in 1987 for $1,000,000

question 116

Multiple Choice

Philip purchased an apartment building in 1987 for $1,000,000.During 2013,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.

Identify the effects of fiscal policy on aggregate demand.

Analyze the impact of government spending and taxes on the economy.

Understand the concept of the multiplier effect and how it operates within the economy.

Grasp the crowding-out effect and its implications on fiscal policy and investment.

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