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C Sold a House Held for Rental Purposes for $40,000

Question 27

Multiple Choice

C sold a house held for rental purposes for $40,000, recognizing § 1250 recapture of $3,000 and § 1231 gain of $5,000.Which of the following is not necessarily true?


A) The basis of the property was $32,000.
B) The depreciation allowed was $3,000 greater than straight-line depreciation would have been.
C) The total depreciation allowed was $8,000.
D) None of the above statements is necessarily true from these limited facts.

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