Tax consequences of the building sale

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Kevin Broid owns all the stock of Dana Corporation. During the year, Kevin sold a building to Dana for $150,000. The building cost $120,000, its adjusted basis was $94,000, and it was depreciated under the straight-line method. Dana intends to use the building in its operations.

What are the tax consequences of the building sale to Kevin Broid, and how did you approach the solution?

Reference no: EM13157498

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