In 1980, Artima Corporation purchased an office building for $400,000 for use in its business. The building is sold during the current year for $550,000. Total depreciation allowed for the building was $390,000; straight-line would have been $360,000. As result of the sale, how much Sec. 1231 gain will Artima Corporation report?
A) $150,000
B) $398,000
C) $510,000
D) $540,000
B) $398,000
1231 gain: $500,000 gain - $30,000 (1250 recapture) - $72,000 (291) = $398,000
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