Kendall sold an apartment building for $713,470 in 2023. The building was purchased in 2017 for $600,000, and $151,806 in depreciation on the building has been taken. Assuming Kendall is married with regular taxable income of $500,000 and in the 35% tax bracket, how is this gain taxed?
Multiple Choice
$113,470 at 0% and $151,806 at 28%,
$113,470 at 25% and $151,806 at 20%.
$151,806 at 25% and $113,470 at 20%.
$151,806 at 28% and $113,470 at 20%