A Retail Building Used in the Business of a Sole

question 15

Multiple Choice

A retail building used in the business of a sole proprietor is sold on March 10,2010,for $322,000.The building was acquired in 2000 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:

Critical Thinking

An in-depth examination and critique of an argument to create a conclusion.

Fair-Mindedness

The quality of being impartial, open to different perspectives, and able to recognize one's own biases.

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.

Critical Thinking

The objective analysis and evaluation of an issue to form a judgment.