Thayer Corporation purchased an apartment building on January 1, 2011, for $200,000. The building was depreciated using the straight-line method. On December 31, 2014, the building was sold for $220,000, when the asset balance net of accumulated depreciation was $170,000. On its 2014 tax return, Thayer should report
a. Section 1231 gain of $42,500 and ordinary income of $7,500
b. Section 2131 gain of $44,000 and ordinary income of $6,000
c. Ordinary income of $50,000
d. Section 1231 gain of $50,000
Answer: B
Tax
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