Orange Company Had Machinery Completely Destroyed by a Fire on December

question 22

Multiple Choice

Orange Company had machinery completely destroyed by a fire on December 23, 2019.The machinery had been acquired on April 1, 2017, for $49,000 and its adjusted basis was $14,200.Orange received $30,000 of insurance proceeds for the machinery 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 these.

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Definitions:

Benefits Administration

This involves the creation, management, and operation of a company's employee benefits program, encompassing health insurance, retirement plans, and other perks.

Rule Based

An approach or system governed by explicit, predefined rules or regulations that dictate the operation or decision-making process.

Outsourced

The practice of having certain job functions or tasks performed outside a company instead of by the company’s own employees.

Repetitive

Involves actions or events occurring in a regular and predictable pattern.