Considering depreciation recapture

Assignment Help Accounting Basics

Reference no: EM13148976

A retail building used in the trucking business of a sole proprietor is sold on February 10, 2008 for $1,000,000. Accelerated depreciation of $450,000 had been taken on the building and it had been acquired in 1985 for $600,000. Straight-line depreciation for the same holding period would have been $300,000. What is the maximum unrecaptured § 1250 gain from this disposition after considering depreciation recapture?

a. $0.

b. $300,000.

c. $450,000.

d. $550,000.

e. None of the above.

Reference no: EM13148976

Questions Cloud

Is the household better off or worse off with the higher : Now suppose that the interest rate falls to 50 percent, and the household decide not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?

What is the expected phenotypic ratio of a cross : What is the expected phenotypic ratio of a cross between eggplants of the genotypes CC gg pp x Cc GgPp?

Infrequent losses that are not considered extraordinary : In its 2010 income statement, what amount should James report as total infrequent losses that are not considered extraordinary.

How many grams of potassium chloride will be generated : How many grams of potassium chloride will be generated on decomposition of 225 grams of potassium chlorate?

Considering depreciation recapture : Straight-line depreciation for the same holding period would have been $300,000. What is the maximum unrecaptured § 1250 gain from this disposition after considering depreciation recapture?

Find actual percentage of accidents covered by company : The company if we want to be 95% confident that the sample percentage is within 3% of the actual percentage of the accidents covered by the company?

Explain do they benefit or help the unskilled worker : How do restrictive job protection measures affect the demand for unskilled workers? Do they benefit or help the unskilled worker? Explain.

Calculate the volume of the gas sample : A sample of gas is confined to a cylinder housed with a movable piston. The gas occupies a volume of 1.8 L at 1.8 atm and 25°C. Calculate the volume of the gas sample if the pressure is increased to 8.6 atm at constant temperature.

The surplus of gasoline would vanish : Refer to situation. An economist would predict that onc e price controls were abolished in the spring of 1974,A) The price of gasoline would decline sharply B) The surplus of gasoline would vanish

User Account

All Pages