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Problem - Jerry uses a building for business purposes. The building was purchased on April 1, year 3, for $124,000. It was sold on October 3, year 6, for $200,000. Accumulated depreciation as of the date of sale was $14,000, $4,000 of which was in excess of straight line. How much of the gain in year 6 is unrecaptured Section 1250 gain?
a. $4,000
b. $10,000
c. $14,000
d. $100,000
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