Blue Company Sold Machinery for $45,000 on December 23, 2017

question 64

Multiple Choice

Blue Company sold machinery for $45,000 on December 23, 2017. The machinery had been acquired on April 1, 2015, for $69,000 and its adjusted basis was $34,200. The § 1231 gain, § 1245 recapture gain, and § 1231 loss from this transaction are:

• A)$0 § 1231 gain, $10,800 § 1245 recapture gain, $0 § 1231 loss.
• B)$0 § 1231 gain, $0 § 1245 recapture gain, $14,800 § 1231 loss.
• C)$0 § 1231 gain, $34,200 § 1245 recapture gain, $0 § 1231 loss.
• D)$0 § 1231 gain, $10,800 § 1245 recapture gain, $34,200 § 1231 loss.
• E)None of the above.