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:

Quantity

The quantity of a tangible or intangible product or service.

Inelastic Region

The inelastic region on a demand curve represents a range where a change in price has little to no effect on the quantity demanded of a good or service.

Demand Curve

A graphical representation showing how the quantity demanded of a good or service varies with its price, ceteris paribus.

Consumer Surplus

The differentiation in the total expenditure consumers are willing and have the economic means to allocate for a good or service, versus what they effectively allocate.