McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 15

Rayburn Corporation has a building that it bought during year 0 for $850,000.It sold the building in year 5.During the time it held the building Rayburn depreciated it by $100,000.What is the amount and character of the gain or loss Rayburn will recognize on the sale in each of the following alternative situations?
a.Rayburn receives $840,000.b.Rayburn receives $900,000.c.Rayburn receives $700,000.