Emma Owns a Small Building ($120,000 Basis and $123,000 FMV)and

question 24

Multiple Choice

Emma owns a small building ($120,000 basis and $123,000 FMV) and equipment ($35,000 basis and $22,000 FMV) .Both assets were acquired three years ago,are used in Emma's business,and are depreciated using straight-line depreciation.Both are destroyed by fire.Insurance proceeds were equal to their FMVs.Only one other transfer of an asset occurs during the year,and a $3,000 LTCL is recognized.After considering all transactions,the tax result to Emma is a

• A)$13,000 NLTCL.
• B)$13,000 ordinary loss.
• C)$3,000 LTCG; $3,000 LTCL; and $13,000 ordinary loss.
• D)$10,000 net ordinary loss and a $3,000 NLTCL.

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Definitions:

Equity

The concept of fairness and justice within the context of employment, finance, and legal systems, ensuring equal opportunities and treatment.

Federal Contractors Program

A set of regulations and requirements that apply to companies doing business with the federal government, often related to employment practices.

Employment Equity Plan

A strategic approach aimed at improving workforce representation and creating equitable opportunities for all employees, specifically focusing on eliminating barriers faced by designated groups.

Diversity Management

The practice of addressing and supporting multiple lifestyles and personal characteristics within a defined group. Management initiatives are usually aimed at creating a positive work environment where the differences of all employees are recognized and valued.