During 2003, Krump Corporation Bought a Factory Building for $500,000

question 51

Multiple Choice

During 2003, Krump Corporation bought a factory building for $500,000. It deducted $180,000 of cost recovery deductions using straight-line depreciation while the building was in service. Krump sells the building in 2018 for $500,000. What are the tax consequences of the sale? (Do not consider Krump's other transactions) .

• A)$180,000 Section 1231 gain.
• B)$180,000 unrecaptured Section 1250 gain.
• C)$180,000 recaptured under Section 1245.
• D)$180,000 Section 1250 gain
• E)$ 90,000 Section 1231 income; and $ 90,000 ordinary income, recaptured under Section 1250.

---

Definitions:

Nervous System

is the network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating its actions and sensory information.

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for processing and transmitting information in the body.

Peripheral Nervous System

The section of the nervous system lying outside the brain and spinal cord, which includes nerves that connect the central nervous system to sensory organs, muscles, and glands.

Fetal Nerve Cell Transplants

A medical procedure that involves transplanting nerve cells from a fetus into the brain or spinal cord of a patient to treat neurological disorders.