What is the amount and character of brad gain or loss

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Problem 1: Brad sold a rental house that he owned for $248,000. Brad bought the rental house five years ago for $227,000 and has claimed $49,000 of depreciation expense. What is the amount and character of Brad's gain or loss?

Multiple Choice

A- $21,000 §1231 gain and $49,000 unrecaptured §1250 gain.
B- None of the choices are correct.
C- $70,000 capital gain.
D- $21,000 ordinary and $49,000 unrecaptured §1250 gain.
E- $70,000 ordinary gain.

Reference no: EM132877269

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