A Business Taxpayer Sells Inventory for $80,000

question 11

Multiple Choice

A business taxpayer sells inventory for $80,000. The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year. The taxpayer has:

• A) No gain or loss.
• B) Sold a long-term capital asset.
• C) Sold a short-term capital asset.
• D) An ordinary gain.
• E) None of the above.

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Definitions:

Vasodilate

The process of widening blood vessels to increase blood flow.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, often measured for diagnosis since it is related to the heart's pump strength and the elasticity of the arteries.

Vasoconstriction

Narrowing of the diameter of blood vessels.

Collagen Fibers

Strong, flexible fibers found in connective tissue, providing support and elasticity.