Sumner Sold Equipment That It Uses in Its Business for $30,700

question 46

Multiple Choice

Sumner sold equipment that it uses in its business for $30,700. Sumner bought the equipment a few years ago for $79,650 and has claimed $39,825 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) $9,125 §1231 loss.
• B) $9,125 §1245 loss.
• C) $48,950 ordinary loss.
• D) $9,125 capital loss.
• E) None of the choices are correct.

---

Definitions:

Comprehensive Crime Act

Legislation intended to address multiple facets of crime and criminal justice, often including preventative measures, law enforcement powers, sentencing, and rehabilitation.

1984

A dystopian novel by George Orwell that explores the themes of totalitarianism, surveillance, and individual freedom.

Drug Enforcement

Law enforcement actions and policies aimed at stopping the illegal drug trade, including the production, distribution, and consumption of controlled substances.

Racial Disparities

Indicates the differences in treatment or outcomes between races, often observed in healthcare, criminal justice, employment, and other societal sectors.