Classify the Gain or Loss on Each of George's Assets

question 43

Multiple Choice

Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-After using a house as his personal home for 20 years,George converts it in 2006 to an office building for use in his construction business.He sells the building at a $65,000 loss in 2013.

• A)Long-term capital
• B)Short-term capital
• C)Collectible gain
• D)Section 1231
• E)Section 1245
• F)Section 1250
• G)Ordinary income/loss
• H)Nontaxable/nondeductible

---

Definitions:

Processed Further

Refers to additional operations or enhancements performed on a product after the initial manufacturing or production stage.

Differential Cost

Represents the difference in total cost that will arise from choosing one option over another in business decisions, often used in the evaluation of alternative projects or decisions.

Product P

A placeholder name for a specific product, often used in examples or theoretical scenarios.

Opportunity Cost

The amount of income forgone from an alternative to a proposed use of cash or its equivalent.