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Otis Bought a 2-Unit Apartment Building in July 2009 for $330,000

Question 5

Multiple Choice

Otis bought a 2-unit apartment building in July 2009 for $330,000 and sold it for $400,000 on December 20,2016.At the time of sale there was $83,493 of accumulated straight-line depreciation on the apartment building.Assuming Otis is in the 33% tax bracket,how much of the gain will be taxed at 25%?


A) $153,493.
B) $83,493.
C) $70,000.
D) $0.

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