Firm F purchased a commercial office building for business use in 2008 for $965,000. This year, the firm sold the building for $1 million. Accumulated MACRS depreciation through date of sale was $275,000. Which of the following statements is true?
A. If Firm F is a noncorporate taxpayer, it recognizes $310,000 Section 1231 gain.
B. If Firm F is a corporation, it recognizes $55,000 ordinary income and $255,000 Section 1231 gain.
C. Both if Firm F is a corporation, it recognizes $55,000 ordinary income and $255,000 Section 1231 gain and if Firm F is a noncorporate taxpayer, it recognizes $310,000 Section 1231 gain are true.
D. If Firm F is a corporation, it recognizes $62,000 ordinary income and $248,000 Section 1231 gain.
Answer: C
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