In 2021, Zhang recognized a $45,000 gain on the sale of Section 1231 property. Over the previous five-year period, Zhang recognized the following net Section 1231 gains and (losses): 2020 ($28,000) 2019 $16,000 2018 ($30,000) Zhang's 2021 gain is characterized as Multiple Choice A.$45,000 capital gain B.$42,000 ordinary gain and $3,000 capital gain C.$28,000 ordinary gain and $17,000 capital gain D.$45,000 ordinary gain
In 2021, Zhang recognized a $45,000 gain on the sale of Section 1231 property. Over the previous five-year period, Zhang recognized the following net Section 1231 gains and (losses): 2020 ($28,000) 2019 $16,000 2018 ($30,000) Zhang's 2021 gain is characterized as Multiple Choice A.$45,000 capital gain B.$42,000 ordinary gain and $3,000 capital gain C.$28,000 ordinary gain and $17,000 capital gain D.$45,000 ordinary gain
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 15MCQ
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Question
In 2021, Zhang recognized a $45,000 gain on the sale of Section 1231 property. Over the previous five-year period, Zhang recognized the following net Section 1231 gains and (losses):
2020 ($28,000)
2019 $16,000
2018 ($30,000)
Zhang's 2021 gain is characterized as
Multiple Choice
A.$45,000
B.$42,000 ordinary gain and $3,000 capital gain
C.$28,000 ordinary gain and $17,000 capital gain
D.$45,000 ordinary gain
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT