Income Earned from the Sale of an Asset for More

question 31

Multiple Choice

Income earned from the sale of an asset for more than you paid for it is classified as

• A)dividend income.
• B)business income.
• C)capital gain.
• D)windfall.

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Definitions:

Good Faith

A legal principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual and legal obligations.

Sale of Goods

A transaction involving the transfer of ownership of tangible personal property from a seller to a buyer for a price.

Tangible Personal Property

Physical items that can be owned and have value, such as furniture, jewelry, and vehicles.

Consideration

Something of value exchanged between parties in a contract that induces them to enter into the agreement.