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  3. in 2006, tyr inc. purchased a warehouse for $295,0

In 2006, TYR Inc. purchased a warehouse for $295,000. This year, the corporation sold the...

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Accounting

In 2006, TYR Inc. purchased a warehouse for $295,000. This year, the corporation sold the warehouse to Firm D for a cash payment of $80,000 and Ds assumption of a $225,000 mortgage. Through date of sale, TYR claimed $72,000 of straight-line depreciation on the warehouse.

a) Compute TYRs recognized gain on the sale of the warehouse.

b) What is the character of the gain?

c) Would your answers change if TYR is a noncorporate business?

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