In 1980,Artima Corporation purchased an office building for $400,000 for use in its business.The building is sold during the current year for $550,000.Total depreciation allowed for the building was $390,000; straight-line would have been $360,000.As result of the sale,how much Sec.1231 gain will Artima Corporation report?
A)$150,000
B)$398,000
C)$510,000
D)$540,000

Question

Quizplus · Accepted Answer

B)
 11ea7cb8_54d3_e1d2_928c_2d07fed0f589_TB1258_00 1231 gain: $500,000 gain - $30,000 (1250 recapture)- $72,000 (291)= $398,000

In 1980,Artima Corporation Purchased an Office Building for $400,000 for Use