In 1980,Mr

Multiple Choice

In 1980,Mr.Lyle purchased a factory building to use in business for $480,000.When Mr.Lyle sells the building for $580,000,he has taken depreciation of $470,000.Straight-line depreciation would have been $400,000.Mr.Lyle must report

A) $570,000 of ordinary gain.
B) $570,000 of Sec.1231 gain.
C) $70,000 of ordinary income and $500,000 of Sec.1231 gain.
D) $470,000 of ordinary gain and $100,000 of Sec.1231 gain.