Albert's Sole Proprietorship Owns the Following Assets * Potential § 1245 Recapture of $45,000

question 7

Multiple Choice

Albert's sole proprietorship owns the following assets. $\begin{array}{lrr}&\text { Adjusted Basis Fair }&\text { Market Value }\\\text { Accounts receivable } & \$-0- & \$ 60,000 \\\text { Inventory } & 20,000 & 30,000 \\\text { Machinery and equipment* } & 50,000 & 90,000 \\\text { Buil dings** } & 120,000 & 170,000 \\\text { Land } & 80,000 & 140,000 \\& \$ 270,000 & \$ 490,000\end{array}$ * 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.

Recognize the symptoms and diagnostic criteria of panic disorder and its impact on daily functioning.

Understand prevalence rates and societal impacts of psychological disorders.

Describe the characteristics and diagnosis of dissociative disorders.

Distinguish between different mood disorders and understand their key features.

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Definitions:

Enforceable Agreement

A contract or agreement that is legally binding and can be upheld or compelled by law.

Title of Goods

A formal documentation or legal term indicating ownership rights over goods.

Express Contract

A contract explicitly stated by the parties, either orally or in writing, detailing the terms clearly.

Contract Formed

refers to the creation of a legally binding agreement that arises when an offer by one party is accepted by another party, meeting the necessary legal requirements.