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

Exercise 45

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.