A corporation sold a warehouse during the current year.The straight-line depreciation method was used.Information about the building is presented below: How much gain should the corporation report as Sec.1231 gain?
A)$124,000
B)$620,000
C)$586,000
D)$710,000

Question

A corporation sold a warehouse during the current year.The straight-line depreciation method was used.Information about the building is presented below:  How much gain should the corporation report as Sec.1231 gain?
A)$124,000 
B)$620,000 
C)$586,000 
D)$710,000

Quizplus · Accepted Answer

C)
 11ea7cb8_54d3_e1d4_928c_c7182d46f668_TB1258_00 $710,000 total gain - $124,000 Sec.291 recapture = $586,000 Sec.1231 gain

A Corporation Sold a Warehouse During the Current Year