Proctor Inc

question 111

Multiple Choice

Proctor Inc. was incorporated in 2012 and adopted a calendar year. Here is a schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2017.
In 2018, Proctor recognized a $25,000 gain on the sale of business land. How is this gain characterized on Proctor's tax return?

• A) $25,000 Section 1231 gain.
• B) $19,700 ordinary gain and $5,300 Section 1231 gain.
• C) $15,900 ordinary gain and $9,100 Section 1231 gain.
• D) $25,000 ordinary gain.

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Definitions:

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Drug Toxicity

The harmful effects caused by the excessive consumption or exposure to chemical substances or pharmaceuticals.

Rehabilitation

A comprehensive program designed to restore someone to good health or to an optimal functional level following illness, injury, or surgery.