This Year Jenna Had the Gains and Losses Noted Below

question 64

Multiple Choice

This year Jenna had the gains and losses noted below on property,plant and equipment used in her business.Each asset had been held longer than one year.Jenna has not previously disposed of any business assets. $$\begin{array} { |l | r| } \hline\text { Loss due to insurance reimbursement for fire } & \$ ( 17,000 ) \\\hline \text { Loss due to condemnation } & ( 12,000 ) \\\hline \text { Gain on sale of Sec. } 1231 \text { property } & 21,000 \\\hline\end{array}$$ Jenna will recognize

• A) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ ( 17,000 ) & \$ 9,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ ( 29,000 ) & \$ 21,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ ( 8,000 ) & \$ 0 \\
• \hline
• \end{array}\]
• D) \[\begin{array} {| r | r | }
• \hline \text { Ordinary gain (loss) } & \text { LTCG(L) } \\
• \hline \$ ( 12,000 ) & \$ 4,000 \\
• \hline
• \end{array}\]

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Definitions:

Apparent Authority

The perceived ability of an agent to act on behalf of another party, based on the actions or statements of the principal.

Dissolution

The process of legally dissolving a corporation or partnership, effectively ending its existence.

Limited Partners

Investors in a limited partnership who are not directly involved in the management of the enterprise and whose liability is limited to the amount of their investment.

Lawsuit

A legal action brought in a court of law by one party against another for the enforcement or protection of a right, or the redress or prevention of a wrong.