Harrison Corporation sells a building for $330,000 in the current year. Harrison purchased the building in 2008 for $250,000 and had taken $20,000 in depreciation on the building up to the date of its sale. How should Harrison report the gain on the sale of the building?
a. Section 1231 gain of $100,000.
b. Ordinary income of $100,000.
c. Section 1231 gain of $80,000 and ordinary income of $20,000.
d. Section 1231 gain of $96,000 and ordinary income of $4,000.
e. Ordinary income of $96,000 and Section 1231 gain of $4,000.
d
Business
You might also like to view...
Morgan Company issues 9%, 20 year bonds with a par value of $750,000 that pay interest semi-annually. The current market rate is 8%. The amount of interest paid to the bondholders for each semiannual interest payment is
A. $33,750 B. $67,500 C. $60,000 D. $30,000
Business
The advantage of secondary research is that it
a. Is quick and often free b. Is timely c. Is accurately collected d. Exactly answers your questions
Business