22. Martha McDonald purchased an office building in 1995 for $630,000. In 2015, she sells the...

 

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22. Martha McDonald purchased an office building in 1995 for $630,000. In 2015, she sells the building for $950,000. Over the years, she had replaced the windows and doors at a cost of $60,000, repainted the exterior at a cost of $15,000, and installed an elevator at a cost of $90,000. Martha had taken straight line depreciation on the building for 20 years, for a total of $400,000. a. What is Martha's basis in the building at the time of the sale? b. What is her realized gain? What is her recognized gain? C. 22. Martha McDonald purchased an office building in 1995 for $630,000. In 2015, she sells the building for $950,000. Over the years, she had replaced the windows and doors at a cost of $60,000, repainted the exterior at a cost of $15,000, and installed an elevator at a cost of $90,000. Martha had taken straight line depreciation on the building for 20 years, for a total of $400,000. a. What is Martha's basis in the building at the time of the sale? b. What is her realized gain? What is her recognized gain? C.

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Solution a b c Answers are highlighted in Yellow Purchase co... View the full answer