Kristine Owns All of the Stock of a C Corporation

question 68

Multiple Choice

Kristine owns all of the stock of a C corporation which owns the following assets:

* Potential § 1245 recapture of $45,000.
** Straight-line depreciation was used.
Her adjusted basis for her stock is $270,000.Calculate Kristine's recognized gain or loss and classify it as capital or ordinary if she sells her stock for $500,000.

• A)$230,000 ordinary income.
• B)$230,000 capital gain.
• C)$115,000 ordinary income and $115,000 capital gain.
• D)$110,000 ordinary income and $120,000 capital gain.
• E)None of the above.

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Definitions:

White Blood Cell

Cells of the immune system involved in defending the body against both infectious disease and foreign materials.

Differential White Blood Cell Count

A test that measures the percentages of different types of white blood cells in the blood, used to diagnose and monitor diseases.

Lymphocytes

A type of white blood cell integral to the immune system, with roles in adaptive immunity, including B cells and T cells.

Parasitic Worm Infection

An infestation by helminths, a group of parasitic worms, that can cause disease and malnutrition in humans.