Identify the Type(s) of Gain or Loss That Would Be

question 19

Multiple Choice

Identify the type(s) of gain or loss that would be recognized on the following asset sales as capital, Section 1231, ordinary, Section 1245 recapture, Section 291 recapture, or Section 1250 unrecaptured gain.
-A business sells a machine used in its business for $18,000. It had purchased the machine 10 months earlier for $26,000. What is the amount and type of the $8,000 loss on the sale of the asset?

• A) Ordinary loss
• B) Section 1231 loss
• C) Section 1245 loss
• D) Capital loss

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Definitions:

Heterozygous

Describes an individual having two different alleles for a specific gene.

Alleles

Genes governing variation of the same character that occupy corresponding positions (loci) on homologous chromosomes; alternative forms of a gene.

Genotype

The genetic makeup of, or combination of alleles in, an individual. Compare with phenotype.

Genetic Makeup

The complete set of genes or genetic material present in a cell or organism.