Abby Sold Her Unincorporated Business That Consisted of Equipment and Goodwill.The

question 8

Multiple Choice

Abby sold her unincorporated business that consisted of equipment and goodwill.The equipment had an original cost of $200,000 and Abby had claimed $120,000 in depreciation (adjusted basis = $80,000) .Abby had no basis in the goodwill.The sales price for the business was $250,000 with $150,000 for the equipment and $100,000 for the goodwill.The buyer agreed to pay $120,000 on June 30, 2019, and $130,000 (plus interest at the Federal rate) in two years.Abby's gain to be reported in 2019 (exclusive of interest) is:

• A)$40,000.
• B)$51,000.
• C)$102,000.
• D)$118,000.
• E)$170,000.

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Definitions:

Factual Evidence

Information and material that is presented in court to support the truth or falsehood of a claim, consisting of tangible items and eyewitness testimony.

Legal Work

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Serve Subpoenas

The process of delivering a subpoena, a legal document ordering someone to attend court or produce documents, to the person named in the document.

Licensed Investigator

A professional investigator who has obtained the necessary license to conduct investigations, often related to legal matters.