Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year, the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption of a $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-line depreciation on the warehouse. Required: . b. What is the character of this gain capital gain and ordiary gain?
Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year, the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption of a $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-line depreciation on the warehouse. Required: . b. What is the character of this gain capital gain and ordiary gain?
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 32CE
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Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year,
the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption of
a $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-line
depreciation on the warehouse.
Required:
.
b. What is the character of this gain
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