Mr. and Mrs. Churchill operate a small business. This year, the Churchills sold a commercial office building used in their business for $1.5 million. They purchased the building in 1999 for a cost of $1.4 million and had deducted $538,000 MACRS depreciation through date of sale. The Churchills should characterize the $638,000 gain recognized on sale as:
A. Capital gain
B. Section 1231 gain
C. Ordinary gain
D. $538,000 ordinary gain and $100,000 Section 1231 gain
Answer: B
You might also like to view...
Corina almost always shops at Gas-N-Go. She finds the store easily accessible from the highway, likes the service, and receives special discounts as a frequent customer. Corina is less likely to shop around for her next purchase because Gas-N-Go satisfies Corina by:
A. maximizing Corina's solo exchange profit. B. reducing Corina's attitudinal loyalty. C. reducing its profit margin. D. producing a partnering relationship. E. reinforcing a functional relationship.
The total interest expense over the entire life of a bond is equal to the sum of the interest payments plus the totaldiscount or minus the total premium related to the bond
a. True b. False Indicate whether the statement is true or false
The distinct family-related phases that an individual progresses through over the course of his or her life are called the
A. family growth chart. B. life stage continuum. C. progression timeline. D. life stage sequence. E. family life cycle.
Alex is having trouble concentrating on a report he is reading because his smartphone keeps ringing and his colleagues keep sending him text messages. What kind of communication barrier is this?
A) Differing frames of reference B) Digital interruptions C) Lack of language skills D) Bypassing