Sumner Sold Equipment That It Uses in Its Business for $30,000

question 2

Multiple Choice

Sumner sold equipment that it uses in its business for $30,000. Sumner bought theequipment a few years ago for $80,000 and has claimed $40,000 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?

• A) $10,000 §1231 loss.
• B) $10,000 capital loss.
• C) $10,000 §1245 loss.
• D) $50,000 ordinary loss.
• E) None of the choices are correct.

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Definitions:

Erikson

A psychologist known for his theory on psychological development across the lifespan, emphasizing eight stages of human development.

Personal Conflicts

Internal struggles resulting from opposing needs, desires, or demands within an individual.

Stages of Life

Represents the different phases an individual goes through from birth to death, each with its own unique challenges and milestones.

Psychosexual Development

A Freudian concept describing how personality develops through stages characterized by a focus on erogenous zones.