Wilshire Corporation purchased a commercial building in 1987 for $975,000.During 2013,the building is sold for $775,000.The actual depreciation on the building as of the sale date was $300,000.What is the amount and character of the gain recognized on the sale?

Question

Quizplus · Accepted Answer

The gain is calculated as the sale price ($775,000) minus the adjusted basis ($975,000 - $300,000 depreciation), resulting in a $100,000 gain. Since it's real property, it's a Section 1231 gain.

Wilshire Corporation Purchased a Commercial Building in 1987 for $975,000