Question

An apartment building was acquired several years ago by an individual tax-payer. The depreciation taken on the building was $123,000, and the building was sold for a $34,000 gain. What is the maximum amount of 25% gain

Answer 1

Answer:

The seller's maximum gain was $34,000.

Explanation:

After considering depreciation on the the building, it was still sold with a profit of $34,000. Also, the gain on the sale of the building is actually lesser than the amount of accumulated depreciation. Hence, the conclusion is that the seller's maximum gain was $34,000.