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Marta Purchased Residential Rental Property for $600,000 on January 1,1985

Question 79

Multiple Choice

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) $750,000 Sec.1231 gain.
B) $150,000 Sec.1231 gain and $600,000 ordinary income.
C) $750,000 ordinary gain due to Sec 1245.
D) $750,000 ordinary gain due to Sec.1250.

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