What are the amount and nature of ivory gain or loss

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On September 3, 2017, Ivory Company acquired an apartment building for $1,500,000 (with $300,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on September 30, 2020, for $1,400,000.

Problem a. Compute the cost recovery and adjusted basis for the building.

Problem b. What are the amount and nature of Ivory's gain or loss from disposition of the property? What amount, if any, of the gain is unrecaptured § 1250 gain?

Reference no: EM132708677

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