During 2003, Krump Corporation bought a factory building for $500,000. It deducted $180,000 of cost recovery deductions using straight-line depreciation while the building was in service. Krump sells the building in 2018 for $500,000. What are the tax consequences of the sale? (Do not consider Krump's other transactions).
A)$180,000 Section 1231 gain.
B)$180,000 unrecaptured Section 1250 gain.
C)$180,000 recaptured under Section 1245.
D)$180,000 Section 1250 gain
E)$ 90,000 Section 1231 income; and $ 90,000 ordinary income, recaptured under Section 1250.

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The Answer of During 2003, Krump Corporation bought a factory building for $500,000. It deducted $180,000 of cost recovery deductions using straight-line depreciation while the building was in service. Krump sells the building in 2018 for $500,000. What are the tax consequences of the sale? (Do not consider Krump's other transactions).
A)$180,000 Section 1231 gain.
B)$180,000 unrecaptured Section 1250 gain.
C)$180,000 recaptured under Section 1245.
D)$180,000 Section 1250 gain
E)$ 90,000 Section 1231 income; and $ 90,000 ordinary income, recaptured under Section 1250.

During 2003, Krump Corporation Bought a Factory Building for $500,000