Beige corporation, a c corporation, purchases a warehouse on august 1, 2002, for $1 million. straight-line depreciation is taken in the amount of $411,750 before the property is sold on june 12, 2018, for $1.2 million. what is the amount and character of the gain recognized by beige on the sale of the realty?

The amount and character of the gain recognized by Beige on the sale of the realty is  Section 1231 gain of $611,750

Explanation:

Beige Corporation purchased and held the property for more than one year so they must use Section 1231, according to this section the gain for selling this property is a long-term capital gain.  

Purchase  Value -  Depreciation = Actual Value

$1,000,000 - $411,750  =  $588.250

Sale Value - Actual Value = Gain or loss

$1,200,000 - $588.250,00  

=  $611.750,00

a

explanation:

answer; be sure that the information on file is correct;