Alpha Sold Machinery That It Used in Its Business to Beta

question 22

Multiple Choice

Alpha sold machinery that it used in its business to Beta, a related entity, for $40,050. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,950 and has claimed $30,050 of depreciation expense. What is the amount and character of Alpha's gain?

• A) $20,150 ordinary income under §1239.
• B) $10,000 ordinary gain and $10,150 §1231 gain.
• C) $20,150 §1231 gain.
• D) $20,150 capital gain.
• E) None of the choices are correct.

Understand the appropriate tone and style to use when creating content for social media.

Identify the potential drawbacks and challenges businesses face when using social media.

Grasp the significance of honesty and transparency in social media interactions.

Recognize the wide-reaching potential audience of social media messages.

---

Definitions:

Clichés

Overused expressions or ideas that have lost their originality and impact due to excessive use.

Profession

A paid occupation, especially one that involves prolonged training and a formal qualification.

Abstract Words

Words that represent concepts, qualities, or ideas rather than concrete or physical objects.

Concrete Words

Words that denote objects or events that are immediately perceptible to the senses.