Gain on the sale of the apartment


An individual purchased an apartment building for use in a business for $300,000 in 2005. Th e building was sold for $350,000 in October 2013. Depreciation taken was $84,000. If there is no other Section 1231 gain (loss) during the year, how will the gain on the sale of this apartment building be treated?

a. $134,000 15% long-term capital gain

b. $84,000 15% long-term capital gain; $50,000 25% long-term capital gain

c. $50,000 15% long-term capital gain; $84,000 25% long-term capital gain

d. $134,000 25% long-term capital gain

e. $134,000 short-term capital gain

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Accounting Basics: Gain on the sale of the apartment
Reference No:- TGS038500

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