Quidik Corporation Sold a Machine for $80,000 That It Had

question 13

Multiple Choice

Quidik Corporation sold a machine for $80,000 that it had acquired three years ago for $68,000.If its adjusted basis when sold was $50,000, what should Quidik report on its tax return as a result of this sale?

• A)Section 1245 recapture of $18,000; Section 1231 gain of $30,000;
• B)Ordinary income of $12,000 and Section 1231 gain of $18,000
• C)Section 1245 recapture of $18,000 and Section 1231 gain of $12,000;
• D)Section 1231 gain of $38,000

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Definitions:

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often leading to biases or prejudgment against them due to perceived differences.

Attitude Polarization

The phenomenon where a disagreement becomes more extreme as the different parties consider evidence on the issue.

Informational Influence

Going along with the crowd because you think the crowd knows more than you do.

Welfare Reform

Definition: Legislative changes aimed at restructuring government welfare programs, typically with goals such as reducing dependency on government assistance and encouraging employment.