Martone Corporation Sells Two Machines and a Warehouse It Has

question 25

Multiple Choice

Martone Corporation sells two machines and a warehouse it has been using for storage in the current tax year.Each of the machines cost $25,000 and has an adjusted basis of $11,000 when each was sold for $14,000.The warehouse cost $105,000, has an adjusted basis of $60,000 and is sold for $95,000.All assets were depreciated using MACRS depreciation.What is the amount and type of gain recognized by Martone on the sale of these assets?

• A)$6,000 Section 1245 recapture; $35,000 Section 1231 gain
• B)$6,000 Section 1245 recapture; $7,000 Section 291 recapture; $28,000 Section 1231 gain
• C)$6,000 section 1245 recapture; $35,000 Section 291 recapture
• D)$41,000 capital gain

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Cognitive Needs

Psychological requirements of a person for understanding, knowledge, and intellectual development.

Consciousness

The condition in which an individual is conscious of and can reflect upon their own being, senses, mental activities, environment, and life events.

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A leading figure in psychology, Abraham Maslow was an American psychologist famous for formulating the hierarchy of needs theory, which asserts that psychological health stems from the sequential fulfillment of inherent human needs, the ultimate of which is self-actualization.

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