Sally Acquired an Apartment Building in 1999 for $150,000 and Sold

question 79

Multiple Choice

Sally acquired an apartment building in 1999 for $150,000 and sold it for $410,000 in 2014. At the time of the sale, there is $65,000 of accumulated straight-line depreciation on the apartment building. Assuming Sally is in the 35 percent tax bracket for ordinary income, how much of her gain is taxed at 15 percent?

• A)None
• B)$65,000
• C)$260,000
• D)$325,000
• E)$345,000

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