Which of the Following Transactions Results Solely in §1245 Gain

question 118

Multiple Choice

Which of the following transactions results solely in §1245 gain?

• A)Sale of machinery held for less than one year.
• B)Sale of machinery held for more than one year, where the gain realized exceeds the accumulated depreciation.
• C)Sale of machinery held for more than one year, where the accumulated depreciation exceeds the gain realized.
• D)Sale of land held for more than one year, where the amount realized exceeds the adjusted basis.
• E)None of the choices are correct.

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Definitions:

Socially Optimal

A state of allocation of resources that achieves the best possible outcomes for society as a whole, considering both efficiency and equity.

Short-Run Aggregate-Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period when some resources (e.g., wages and resource prices) are fixed.

Trade-Off

A scenario where one sacrifices a certain attribute or characteristic to gain another.

Inflation

A widespread rise in prices and a decrease in the value of money.