Which of the Following Transactions Results Solely in §1245 Gain

question 118

Multiple Choice

Which of the following transactions results solely in §1245 gain?

• A)Sale of machinery held for less than one year.
• B)Sale of machinery held for more than one year, where the gain realized exceeds the accumulated depreciation.
• C)Sale of machinery held for more than one year, where the accumulated depreciation exceeds the gain realized.
• D)Sale of land held for more than one year, where the amount realized exceeds the adjusted basis.
• E)None of the choices are correct.

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Definitions:

Foreign Sovereign

A term referring to a foreign government or its represented leader, often involved in legal issues concerning jurisdiction and immunity.

European Union

A politico-economic union of 27 member states that are located primarily in Europe, established to foster economic cooperation and governance among its members.

Membership

denotes the state or condition of being a member of a group, organization, or society.

Direct Export Sale

A business transaction where goods are sold and shipped directly from the manufacturer in one country to a buyer in another country.