Several Years Ago, Tom Purchased a Structure for $300,000 That

Multiple Choice

Several years ago, Tom purchased a structure for $300,000 that was placed in service in 1929. Three and one-half years ago he incurred qualifying rehabilitation expenditures of $600,000. In the current year, Tom sold the property in a taxable transaction. Calculate the amount of the recapture of the tax credit for rehabilitation expenditures.

A) $0
B) $24,000
C) $36,000
D) $48,000
E) None of the above