Reference no: EM132039642

Bart purchased an office building for $630,000. This year he sells the building for $950,000. Over the year, he replaced the windows and doors at a cost of $60,000, repainted the exterior (repainting is considered maintenance) at a cost of $15,000, and installed an elevator at a cost of $90,000. Bart took straight line depreciation on the building for 20 years for a total of $400,000.

What is Bart's basis in the building at the time of the sale?

A)$380,000

B)$290,000

C)$230,000

D)$630,000

What is Bart's realized gain?

A)$410,000

B)$320,000

C)$950,000

D)$570,000

What is Bart's recognized gain?

A)$320,000

B)$950,000

C)$410,000

D)$570,000