Nature of pauls gain on the sale of the rental property

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Reference no: EM13874850

During 2014, Paul sells residential rental property for $300,000, which is acquired in 1994 for $150,000. Paul has claimed straight-line depreciation on the building of $57,525. What is th4e amount and nature of Paul's gain on the sale of the rental property?

A. $207,525 Section 1231 gain

B. $150,000 Section 121 gain. $57,525 "unrecaptured depreciation"

C. $167,400 Section 1231 gain, $57,525 ordinary income

D. $190,125 Section 1231 gain, $17,400 "unrecaptured depreciation"

E. None of the above

Reference no: EM13874850

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