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Social Science Clinic => Accounting => Topic started by: skymedlock on Sep 13, 2020

Title: Ross purchased a building in 1985, which he uses in his manufacturing business. Ross uses the ACRS ...
Post by: skymedlock on Sep 13, 2020

Ross purchased a building in 1985, which he uses in his manufacturing business. Ross uses the ACRS statutory rates to determine the cost-recovery deduction for the building. Ross's original cost for the building is $500,000 and cost-recovery deductions allowed are $500,000. If the building is sold for $340,000, the tax results to Ross are
◦ $340,000 LTCG.
◦ $340,000 Sec. 1231 gain.
◦ $340,000 Sec. 1245 ordinary income.
◦ $340,000 Sec. 1250 ordinary income.

Title: Ross purchased a building in 1985, which he uses in his manufacturing business. Ross uses the ACRS ...
Post by: Ddddd on Sep 13, 2020

$340,000 Sec. 1245 ordinary income.