In 2019,Mary Recognized a $45,000 Gain on the Sale of Section

question 50

Multiple Choice

In 2019,Mary recognized a $45,000 gain on the sale of Section 1231 property.Over the previous five-year period,Mary recognized the following net Section 1231 gains and (losses) : 2018 ($28,000)
2017 $16,000
2016 ($30,000)
Mary's 2019 gain is characterized as

• A)$45,000 ordinary gain
• B)$42,000 ordinary gain and $3,000 capital gain
• C)$28,000 ordinary gain and $17,000 capital gain
• D)$45,000 capital gain

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced, a measure of per unit cost.

Marginal Cost

The cost of producing one additional unit of a good or service, which can vary depending on the level of production.

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost per unit of output.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding all other inputs constant.