Emily,whose Tax Rate Is 28%,owns an Office Building Which She

Multiple Choice

Emily,whose tax rate is 28%,owns an office building which she purchased for $900,000 on March 18 of last year.The building is sold for $950,000 on February 20 of this year when the adjusted basis of the building was $876,000.The tax results to Emily are

A) $74,000 1231 gain taxed at 15%.
B) $74,000 ordinary income taxed at 28%.
C) $24,000 1250 unrecaptured gain taxed at 25% and $50,000 1231 gain taxed at 15%.
D) $24,000 1231 gain taxed at 15% and $50,000 ordinary income taxed at 28%.