Identify Which of the Following Is False

question 102

Multiple Choice

Identify which of the following is false.

• A) Corporations that sell real property at a gain must report an additional 20% of the entire gain as ordinary income.
• B) Section 291 reduces the amount of net Sec. 1231 gains that can be offset by corporate capital losses.
• C) Section 291 recapture applies to Sec. 1250 property.
• D) Corporations selling real property that previously had been depreciated using an accelerated method are subject to Sec. 291.

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Definitions:

Machine-Hours

A measurement of the amount of time machines are operated during the production process.

Direct Labor-Hours

The total hours worked directly on the production of goods, used as a basis for allocating labor costs to products.

Departmental Predetermined Rates

Specific overhead rates calculated for each department within a company, used to allocate indirect costs more accurately.

Machine-Hours

A measure of the total time that machines are operated within a specific period, used for allocating manufacturing overhead costs to products.