Alpha Sold Machinery That It Used in Its Business to Beta

question 113

Multiple Choice

Alpha sold machinery that it used in its business to Beta, a related entity, for $40,400. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,600 and has claimed $30,400 of depreciation expense. What is the amount and character of Alpha's gain?

• A)$21,200 ordinary income under §1239.
• B)$10,000 ordinary gain and $11,200 §1231 gain.
• C)$21,200 §1231 gain.
• D)$21,200 capital gain.
• E)None of the choices are correct.

Grasp the social and cultural influences on the transition to adulthood.

Recognize the importance of physical activity and nutrition in maintaining health during adulthood.

Know the risks and prevention strategies for common physical and mental health issues in adulthood.

Understand the factors affecting conception and fertility and their relationship with age.

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Definitions:

Elbow

The joint connecting the forearm to the upper arm, allowing for arm bending and extension.

Trochlear Notch

A depression on the proximal end of the ulna that articulates with the trochlea of the humerus, aiding in elbow joint movement.

Greater Tubercle

A large, bony prominence on the lateral portion of the humerus (upper arm bone), to which several shoulder muscles attach.

Olecranon

The bony prominence of the elbow, found at the upper end of the ulna, where it forms part of the elbow joint.