Mr. Briggs purchased an apartment complex on January 10, 2016for $2 million with 10% of the price allocated to land. He sellsthe complex on October 22, 2018 for $2.5 million. Assume that 10%of the $2.5 million selling price is allocated to land and 90% isallocated to the building. \
a. How much depreciation was allowed for 2016?
b. How much depreciation is allowed for 2018?
c. Will any of the gain be ordinary income?
d. What is the amount of gain and the character of the gain onthe sale of the building?
e. What is the amount of gain and the character of the gain onthe sale of the land?
f. Will any of the gain be taxed at 25%?
