Butte Sold a Machine to a Machine Dealer for $50,600

question 113

Multiple Choice

Butte sold a machine to a machine dealer for $50,600. Butte bought the machine for $54,400 several years ago and has claimed $12,200 of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

• A) $8,400 §1231 loss.
• B) $3,800 §1231 loss.
• C) $8,400 ordinary gain.
• D) $8,400 capital gain.
• E) None of the choices are correct.

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Definitions:

Nephron

The basic structural and functional unit of the kidney, essential in the process of filtering blood to produce urine.

Plasma Protein

Proteins found in blood plasma, including albumin, globulin, and fibrinogen, responsible for maintaining osmotic pressure, immunity, and blood clotting.

Dialysis Tubing

A semipermeable membrane tubing used in separation techniques for simulating kidney dialysis.

Electrical Charge

A physical property of matter that causes it to experience a force when near other electrically charged matter.