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