How much of her gain is taxed

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Problem - Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,000 of accumulated straight-line depreciation on the apartment building. Assuming Jeanie is in the highest tax bracket for ordinary income and the Medicare tax on net investment income applies, how much of her gain is taxed at 28.8 percent?

a. None

b. $60,000

c. $200,000

d. $280,000

e. $260,000

Reference no: EM132676077

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