XYZ Company (C Corporation), a calendar year taxpayer, paid $6,500,000 for an apartment complex and allocated $500,000 of the cost to the land. XYZ place the realty in service on November 11 of the previous year. On October 5 of the current year, XYZ sold the apartment complex for $6,700,000 and allocated $600,000 of the price to the land. 

How much of this gain is treated as capital gain, and how much is ordinary gain?  

Answer rating: 100% (QA)

Cost Allocation will be Land 500000 Building 6500000 500000 60000... View the full answer