If Realized Gain from Disposition of Business Equipment Exceeds Total

question 33

True/False

If realized gain from disposition of business equipment exceeds total depreciation or cost recovery,a portion of the gain will receive Sec.1231 treatment if the equipment's holding period is more than one year.

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Definitions:

Secondary Effect

The indirect consequences or impacts of an action or policy that may not be immediately apparent.

Cocaine

A powerful and illegal stimulant drug derived from the leaves of the coca plant, which can cause significant health and legal issues.

Illegal

Activities or actions that are forbidden by law and subject to criminal penalties or fines.

Opportunity Cost

The value of the next best alternative that is foregone when making a decision.