Alpha Sold Machinery That It Used in Its Business to Beta

question 61

Multiple Choice

Alpha sold machinery that it used in its business to Beta, a related entity, for $40,000. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $50,000 and has claimed $30,000 of depreciation expense. What is the amount and character of Alpha's gain?

• A)$20,000 ordinary income under §1239.
• B)$10,000 ordinary gain and $10,000 §1231 gain.
• C)$20,000 §1231 gain.
• D)$20,000 capital gain.
• E)None of the choices are correct.

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Definitions:

Description

The specification and classification of clinical phenomena; one of the primary goals of clinical research.

Transdiagnostic Approach

An approach to treatment that addresses common problems typically observed across several diagnoses.

Psychological Disorders

Mental disorders characterized by significant disturbances in thoughts, emotions, or behavior, correlating with distress or impaired functioning.

Efficacy

The ability to produce a desired or intended result, often used in the context of medications or therapeutic interventions.