Hello tutor need help with general accounting question During 2014, Paul sells the residential rental property for$300,000, which is acquired in 1994 for $150,000. Paul hasclaimed straight-line depreciation on the building of $57,525.What is th4e amount and nature of Paul's gain on the sale of therental property?A. $207,525 Section 1231 gain.B. $150,000 Section 121 gain, $57,525 "unrecaptureddepreciation".C. $167,400 Section 1231 gain, $57,525 ordinary income.D. $190,125 Section 1231 gain, $17,400 "unrecaptureddepreciation".E. None of the above.

Step 1: Introduction to the Straight-line depreciationIn this depreciation method, the same amount…

Answered: During 2014, Paul sells the residential…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 15MCQ

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Jacob purchased business equipment for $89,100 in 2017 and has taken $53,460 of regular MACRS depreciation. Jacob sells the equipment in 2020 for $40,095. What is the amount and character of Jacob's gain or loss? If an amount is zero, enter "0" Jacob has § 1245 gain of $__________ and § 1231 gain of $__________.
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During the current year of assessment, Ana sold her primary residence for R5 000 000. She originally purchased this residence after 1 October 2001 for R3 600 000. She did not use any portion of the house for trade purposes. You may assume that the original cost is the only allowable cost. Which of the following statement is incorrect? Select one: a. The capital gain before any exclusion attributed to the sale of the primary residence is R1 400 000. b. The Proceeds from the sale of the primary residence are R5 000 000. c. Ana can claim the R2000 000 primary residence exclusion in full. O d. The base cost from the sale of the primary residence is R3 600 000.

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