kassidyh7486Lv1

6 Jan 2023

United States tax law

Suppose that Teton was organized as a C corporation and that it sold its existing warehouse. Teton sold the warehouse for $800000,  it initially purchased the warehouse for $600,000, and it has deducted $200.000 of straight-line depreciation deductions as of the date of the sale. What is the amount and character of Teton's gain or loss?  

A. None of above

B. $40.000 ordinary gain and $360,000 $1231 gain

C. $400.000 ordinary gain

D. $400.000 capital gain

E. $200.000 ordinary gain and $200.000 $1231 gain