If a Controlling Shareholder Sells Depreciable Property to a Controlled

question 26

True/False

If a controlling shareholder sells depreciable property to a controlled corporation and the property is depreciable by the purchaser, any gain on the sale is a 1231 gain.

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Definitions:

Marginal Productivity Theory

A principle stating that the wage paid to a factor of production, such as labor, will equal the additional output or marginal product that the factor produces.

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the productive resources involved in its production, emphasizing the contribution of each unit of labor or capital.

Income Distribution

Refers to the way in which total income is shared among the members of a society.

Government Subsidy

A financial contribution provided by the government to individuals, businesses, or other organizations, aimed to support or stimulate economic activity.