Dontrell Sells a Building Used in His Business at a Gain

question 29

Multiple Choice

Dontrell sells a building used in his business at a gain of $20,000. The building was purchased in 2006, and $15,000 of depreciation had been deducted on the building to the date of sale. Dontrell's marginal tax rate is 32% without considering these two transactions. As a result of these transactions
I.Dontrell will pay additional tax of $4,500.
II.The building is Section 1245 property.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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A U.S. state located in the southeastern region, known for its music heritage, particularly in the genres of country, blues, and rock 'n' roll.

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