Marta purchased residential rental property for $600,000 on January 1, 1985. Total ACRS deductions for 1985 through the date of sale amounted to $600,000. If the straight- line method of depreciation had been used, depreciation would have been $600,000. The property is sold for $750,000 on January 1 of the current year. The amount and character of the gain is
A) $150,000 Sec. 1231 gain and $600,000 ordinary income.
B) $750,000 Sec. 1231 gain.
C) $750,000 ordinary gain due to Sec. 1250.
D) $750,000 ordinary gain due to Sec 1245.
Correct Answer:
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