Butte Sold a Machine to a Machine Dealer for $51,700

question 100

Multiple Choice

Butte sold a machine to a machine dealer for $51,700. Butte bought the machine for $53,300 several years ago and has claimed $11,650 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

• A)$10,050 §1231 loss.
• B)$1,600 §1231 loss.
• C)$10,050 ordinary gain.
• D)$10,050 capital gain.
• E)None of the choices are correct.

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Definitions:

Quarrels

Disputes or conflicts, often marked by angry arguments.

Self-Disclosure

The act of revealing personal or private information about oneself to others.

Reciprocal

Involving mutual actions or exchange between two parties or entities.

Cultural Environment

The totality of social norms, values, beliefs, and practices shared by a particular group, influencing behavior and perception.