Kuong inc. sold a commercial office building used in the, Ask an Expert

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Kuong Inc. sold a commercial office building used in the corporate business for $1.5 million. Kuong purchased the building in 1996 for a cost of $1.4 million and had deducted $538,000 MACRS depreciation through date of sale.

A. How much gain will Kuong have and what is its character?

B. If any gain is characterized as ordinary, list the amount and describe why.

C. If Kuong above was an individual, not a corporation, compute the amount of gain and its character.

D. Would any of the gain be subject to the 1250 unrecapture rules? How Much?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M969081

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