A corporation sold a warehouse during the current year. The straight-line depreciation method was used. Information about the building is presented below: How much gain should the corporation report as section 1231 gain?
A) $124,000
B) $620,000
C) $586,000
D) $710,000

Question

A corporation sold a warehouse during the current year. The straight-line depreciation method was used. Information about the building is presented below:  How much gain should the corporation report as section 1231 gain?
A) $124,000 
B) $620,000 
C) $586,000 
D) $710,000

Quizplus · Accepted Answer

11eac5e3_b111_c0bd_a396_c13b4c213d04_TB5639_00 $710,000 total gain - $124,000 Sec. 291 recapture = $586,000 Sec. 1231 gain

A Corporation Sold a Warehouse During the Current Year