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chapter 12 supplemental - 52 a Of the $250,000 gain...

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52. a. Of the $250,000 gain realized and recognized, $100,000 ($500,000 $400,000) is recaptured as ordinary income. The remaining $150,000 is recaptured subject to the maximum rate of 25 percent. This is commercial real property acquired before 1981 (pre- ACRS), the excess depreciation is recaptured as ordinary income and the remaining gain, not to exceed unrecaptured depreciation, is taxed at the maximum rate of 25 percent. b. If this is commercial property depreciated under the ACRS statutory (accelerated) method, the total amount of recognized gain of $250,000 is recaptured as ordinary income. In this case, there is recapture up to the total amount of depreciation taken but not to exceed recognized gain. c. If the property is residential rental housing acquired before 1981 (pre-ACRS), the answer is the same as in (a). d. The answer is the same as in (a) and (c) if it is residential rental housing depreciated under the ACRS statutory method. 53. a. Glen has a realized and recognized gain of $1,150,000, of which $75,000 is recognized
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