Bateman Corporation Sold an Office Building That It Used in Its

Bateman Corporation sold an office building that it used in its business for $800,000.Bateman bought the building ten years ago for $600,000 and has claimed $200,000 of depreciation expense.What is the amount and character of Bateman's gain or loss?

A) $40,000 ordinary and $360,000 §1231 gain.
B) $200,000 ordinary and $200,000 §1231 gain.
C) $400,000 ordinary gain.
D) $400,000 capital gain.
E) None of thesE.For corporations,§291 recapture is 20 percent of the lesser of depreciation taken or the realized gain as ordinary income.The remaining gain is §1231.

Correct Answer:

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