Depreciated under the straight-line method


Kevin Broid owns all the stock of Dana Corporation. During the year, Kevin sold a building to Dana for $150,000. The building cost $120,000, its adjusted basis was $94,000, and it was depreciated under the straight-line method. Dana intends to use the building in its operations.

What are the tax consequences of the building sale to Kevin Broid, and how did you approach the solution?

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Accounting Basics: Depreciated under the straight-line method
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