Harrison Corporation sells a building for $330,000 in the current year. Harrison purchased the building in 2008 for $250,000 and had taken $20,000 in depreciation on the building up to the date of its sale. How should Harrison report the gain on the sale of the building?
A)Section 1231 gain of $100,000.
B)Ordinary income of $100,000.
C)Section 1231 gain of $80,000 and ordinary income of $20,000.
D)Section 1231 gain of $96,000 and ordinary income of $4,000.
E)Ordinary income of $96,000 and Section 1231 gain of $4,000.

Question

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The Answer of Harrison Corporation sells a building for $330,000 in the current year. Harrison purchased the building in 2008 for $250,000 and had taken $20,000 in depreciation on the building up to the date of its sale. How should Harrison report the gain on the sale of the building?
A)Section 1231 gain of $100,000.
B)Ordinary income of $100,000.
C)Section 1231 gain of $80,000 and ordinary income of $20,000.
D)Section 1231 gain of $96,000 and ordinary income of $4,000.
E)Ordinary income of $96,000 and Section 1231 gain of $4,000.

Harrison Corporation Sells a Building for $330,000 in the Current