Albert's Sole Proprietorship Owns the Following Assets: * Potential

question 7

Multiple Choice

Albert's sole proprietorship owns the following assets: * Potential § 1245 recapture of $45,000.
** Straight-line depreciation was used.
Albert sells his sole proprietorship for $500,000. Calculate Albert's recognized gain or loss and classify it as capital or ordinary.

• A) $230,000 ordinary income.
• B) $230,000 capital gain.
• C) $115,000 ordinary income and $115,000 capital gain.
• D) $110,000 ordinary income and $120,000 capital gain.
• E) None of the above.

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Definitions:

Hematocrit

The ratio of the volume of red blood cells to the total volume of blood, expressed as a percentage.

Abbreviation

A shortened form of a word or phrase, used to represent the full term.

Blood Groups

Classification of human blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells.

Complete Blood Count

A blood test that assesses red cells, white cells, platelets, hemoglobin, hematocrit, and other blood components.