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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