In April 1986, Tom Trump purchased an apartment building for $950,000. He depreciated the building using MACRS and claimed a total of $950,000 depreciation before selling the building on December 31, 2012 for
$1,000,000. Straight-line depreciation would have been $950,000. What is the realized gain and how will it be recognized?

Question

Quizplus · Accepted Answer

The Answer of In April 1986, Tom Trump purchased an apartment building for $950,000. He depreciated the building using MACRS and claimed a total of $950,000 depreciation before selling the building on December 31, 2012 for
$1,000,000. Straight-line depreciation would have been $950,000. What is the realized gain and how will it be recognized?

In April 1986, Tom Trump Purchased an Apartment Building for $950,000