Orange Company Had Machinery Destroyed by a Fire on December

question 43

Multiple Choice

Orange Company had machinery destroyed by a fire on December 23, 2017. The machinery had been acquired on April 1, 2015, for $49,000 and its adjusted basis was $14,200. The machinery was completely destroyed and Orange received $30,000 of insurance proceeds for the machine and did not replace it. This was Orange's only casualty or theft event for the year. As a result of this event, Orange has:

• A)$4,200 ordinary loss.
• B)$15,800 § 1245 recapture gain.
• C)$14,200 § 1245 recapture gain.
• D)$30,000 § 1231 gain.
• E)None of the above.

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Definitions:

Systematic Observation

A structured method of data collection where researchers consistently observe and record behavior according to a set of predefined criteria.

Coding Systems

Organized frameworks for categorizing, labeling, or coding data, typically qualitative, to facilitate systematic analysis.

Systematic Observation

An organized method of collecting data where the observer adheres to a set of predefined procedures to minimize biases.

Prior Hypotheses

Preconceived theories or assumptions made before conducting an experiment or research study.