Proctor Inc

question 103

Multiple Choice

Proctor Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2018. In 2019,Proctor recognized a $25,000 gain on the sale of business land.How is this gain characterized on Proctor's tax return?

• A)$25,000 Section 1231 gain.
• B)$19,700 ordinary gain and $5,300 Section 1231 gain.
• C)$15,900 ordinary gain and $9,100 Section 1231 gain.
• D)$25,000 ordinary gain.

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Definitions:

Aerosols

Very small solid particles or drops of liquid dispersed in the atmosphere.

Fissure Eruptions

A volcanic eruption characterized by the release of lava from long cracks or fissures in the Earth's surface, typically resulting in the formation of extensive lava flows.

Lava Fountains

High-speed bursts of molten rock that are ejected from a volcano or vent.

Volcanic Blocks

Large chunks of solid rock ejected from a volcano during an eruption, distinct from smaller pyroclastic materials.