hope you all studying hard!!
I'm confused on this problem below.
1250 recapture rate is 20%? i thought 25%
Please help 🙂
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Thayer Corporation purchased an apartment building on January 1, 2015, for $200,000. The building was depreciated using the straight-line method. On December 31, 2018, the building was sold for $220,000, when the asset balance net of accumulated depreciation was $170,000. On its 2018 tax return, Thayer should report
a Section 1231 gain of $42,500 and ordinary income of $7,500.
b Section 1231 gain of $44,000 and ordinary income of $6,000.
c Ordinary income of $50,000.
d Section 1231 gain of $50,000.
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i chose a with recapture 25%
and correct answer was recapture 20%
FAR - Passed
REG - Passed
AUD - Passed
BEC - July 2020 - PASSSSED!!!!!
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PETH - Oct 2020 - Passed 😉