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

question 16

Multiple Choice

Philip purchased an apartment building in 2001 for $1,000,000. During 2018, 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:

Electrical Stimulation

A method of applying electrical current to stimulate or activate nerves or muscles in the body for therapeutic purposes.

Prefrontal Cortex

The front part of the frontal lobe, involved in decision making, problem-solving, and controlling social behavior.

Neurons

Nerve cells that transmit information through electrical and chemical signals, forming the basic building blocks of the nervous system.

Light Position

The specific location or arrangement of a light source in relation to the subject it illuminates.