Verway, Inc

question 25

Multiple Choice

Verway, Inc., has a 2019 net § 1231 gain of $55,000 and had a $62,000 net § 1231 loss in 2017.For 2019, Verway's net § 1231 gain is treated as:

• A)$55,000 ordinary loss.
• B)$55,000 ordinary gain.
• C)$55,000 capital loss.
• D)$55,000 capital gain.
• E)None of these.

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Definitions:

Goods in Process Inventory

An account in the inventory accounting that represents the cost of unfinished goods in the production process at a particular time.