In 2014, Tim Sells Section 1245 Property for $28,000 That

question 103

Multiple Choice

In 2014, Tim sells Section 1245 property for $28,000 that he had purchased in 2008. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income?

• A)$7,000
• B)$8,000
• C)$13,000
• D)$18,000
• E)None of the above is correct

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Definitions:

Sieve Element

A type of cell found within the phloem of vascular plants, responsible for transporting sugars and other nutrients throughout the plant.

Companion Cell

In phloem, cell that provides metabolic support to its partnered sieve element.

Source Region

An area where specific air masses form, characterized by its uniform temperature and humidity patterns influencing weather and climate.

Sugars

Simple carbohydrates that are used as a primary energy source for living organisms.