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

question 10

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.
-The following properties have been owned by a business for more than one year. Which of them would not qualify for Section 1231 treatment on its disposal?

• A) Property held for rental income
• B) Leasehold improvements
• C) Stock held in inventory
• D) Depreciable assets used in the business

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Definitions:

Biological Therapy

The use of physical and chemical procedures to help people overcome psychological problems.

Cognitive Therapy

A form of psychotherapy that emphasizes the important role of thinking in how we feel and what we do; it is focused on changing distorted thoughts to improve emotional response and behavior.

Catharsis

The reliving of past repressed feelings in order to settle internal conflicts and overcome problems.

Repression

A psychological defense mechanism where unwanted thoughts and desires are unconsciously pushed out of conscious thought.