A Corporation Owns Many Acres of Timber,which It Acquired Three

question 6

Multiple Choice

A corporation owns many acres of timber,which it acquired three years ago,and which has a $120,000 basis.The timber was cut last year for use in the corporation's business.The FMV of the timber on the first day of last year was $270,000.The corporation made the appropriate election to treat the cutting as a sale or exchange.The timber is sold for $300,000 this year.The tax result this year is

• A)recognition of capital gain of $30,000.
• B)recognition of Sec.1231 gain of $30,000.
• C)recognition of ordinary income of $30,000.
• D)no income recognized since all recognition occurs in the year of the cutting of the timber.

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Definitions:

Labial Separation

The parting or division of the labia, which are the outer and inner folds of the vulva.

Nipple Erection

The condition in which the nipples become erect as a reflexive response to cold temperatures or stimulation.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, usually caused by sexually transmitted bacteria, leading to symptoms such as pelvic pain.

Douching

The practice of rinsing or cleaning out the vagina with water or other mixtures of fluids, which is often discouraged by healthcare professionals due to risks of infection.