The Sale of Machinery for More Than the Original Cost

question 45

Multiple Choice

The sale of machinery for more than the original cost basis (before depreciation) , used in a trade or business, and held for more than one year results in the following types of gain or loss?

• A) Capital and Ordinary.
• B) Ordinary only.
• C) Capital and §1231.
• D) §1245 and §1231.
• E) None of the choices are correct.

Understand the principles and applicability of quasi-contracts.

Identify and differentiate between unilateral and bilateral contracts.

Understand the circumstances under which contracts must be in writing according to the Statute of Frauds.

Appreciate the fundamental concept of a contract as a legally enforceable promise or set of promises.

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Definitions:

E-Mail Order

A request or order for goods or services placed through electronic mail.

Evidence

Information or details presented in support of an assertion, claim, or case, often used in legal proceedings to prove or disprove something.

Legitimate Reason

A valid, acceptable explanation or justification for an action or decision, often used in legal and professional contexts.

Documents

Written, printed, or electronic records that provide evidence of something or detail instructions, data, or information.