Sumner Sold Equipment That It Uses in Its Business for $30,200

question 84

Multiple Choice

Sumner sold equipment that it uses in its business for $30,200. Sumner bought the equipment a few years ago for $79,900 and has claimed $39,950 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?

• A)$9,750 §1231 loss.
• B)$9,750 §1245 loss.
• C)$49,700 ordinary loss.
• D)$9,750 capital loss.
• E)None of the choices are correct.

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