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What gain should barney report on the sale of the warehouse

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Problem 1: In 1980, Company A purchased a $120k warehouse to be used as a distribution center for their beverage business. This Year, Company A sold the warehouse for $150k. Company A had fully depreciated the warehouse using accelerated depreciation. Straight line depreciation would have been $90k. What gain should Barney report on the sale of the warehouse (using tax accounting and IRS (internal revenue service) tax law codes)

A $120k ordinary income and $30k section 1231 gain
B $30k ordinary income and $120k section 1231 gain
C $0 ordinary income & $150k sec 1231 gain
D $120k ordinary income

Reference no: EM132811519

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