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