Jeanie acquires an apartment building in 2005 for $250,000 and sells it for $500,000 in 2016. At

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Jeanie acquires an apartment building in 2005 for $250,000 and sells it for $500,000 in 2016. At the time of sale there is $75,400 of accumulated straight-line depreciation on the apartment building. Assuming Jeanie is in the highest tax bracket for ordinary income and the Medicare surtax applies, how much of her gain is taxed at 28.8 percent?

a. None
b. $325,400
c. $250,000
d. $174,600
e. $75,400

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Related Book For  answer-question

Income Tax Fundamentals 2017

ISBN: 9781305872738

35th Edition

Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller

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