K sold a building (held seven years and depreciated using an accelerated method) at a gain of $12,000 during the current year.The depreciation allowed was $45,000 and the straight line depreciation would have been $39,500.Which of the following is not true?

Question

Quizplus · Accepted Answer

Choices A, B, and C are all true based on the given information. However, it is not clear from the information given whether K's § 1231 gain qualifies for the 15 percent capital gain rate. This depends on the classification of the asset sold and whether it is considered a capital asset or a § 1231 asset.

K Sold a Building (Held Seven Years and Depreciated Using