FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question

Brad sold a rental house that he owned for $247,000. Brad bought the rental house five years ago for $228,000 and has claimed $48,500 of depreciation expense. What is the amount and character of Brad's gain or loss?

Multiple Choice

___  $18,000 ordinary and $48,250 unrecaptured 1250 gain.

___  $18,000 1231 gain and $48,250 unrecaptured 1250 gain.

___  $66,250 ordinary gain.

___ $66,250 capital gain.

___ None of the choices are correct.

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