Firm F Purchased a Commercial Office Building for Business Use

Multiple Choice

Firm F purchased a commercial office building for business use in 2008 for $965,000.This year,the firm sold the building for $1 million.Accumulated MACRS depreciation through date of sale was $275,000.Which of the following statements is true?

A) If Firm F is a corporation,it recognizes $55,000 ordinary income and $255,000 Section 1231 gain.
B) If Firm F is a corporation,it recognizes $62,000 ordinary income and $248,000 Section 1231 gain.
C) If Firm F is a noncorporate taxpayer,it recognizes $310,000 Section 1231 gain.
D) Both if Firm F is a corporation,it recognizes $55,000 ordinary income and $255,000 Section 1231 gain and if Firm F is a noncorporate taxpayer,it recognizes $310,000 Section 1231 gain are true.