During the year, FT Corporation sells a building and receives $800,000. The building was originally purchased for $500,000. FT properly took $300,000 of MACRS (straight-line) depreciation. Question 17 options: FT has Sec.1250 depreciation recapture of $300,000. FT has a realized gain of $300,000 FT recognizes a Sec. 1231 gain of $600,000. FT recognizes ordinary income of $60,000 and a Sec. 1231 gain of $540,000 None of the above.
During the year, FT Corporation sells a building and receives $800,000. The building was originally purchased for $500,000. FT properly took $300,000 of MACRS (straight-line) depreciation. Question 17 options: FT has Sec.1250 depreciation recapture of $300,000. FT has a realized gain of $300,000 FT recognizes a Sec. 1231 gain of $600,000. FT recognizes ordinary income of $60,000 and a Sec. 1231 gain of $540,000 None of the above.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 44P
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Question
During the year, FT Corporation sells a building and receives $800,000. The building was originally purchased for $500,000. FT properly took $300,000 of MACRS (straight-line)
Question 17 options:
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FT has Sec.1250 depreciation recapture of $300,000. |
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FT has a realized gain of $300,000 |
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FT recognizes a Sec. 1231 gain of $600,000. |
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FT recognizes ordinary income of $60,000 and a Sec. 1231 gain of $540,000 |
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None of the above. |
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