Two Months Ago, Dawes Inc

question 81

Multiple Choice

Two months ago, Dawes Inc. broke a multi-year lease on office space that it had occupied for four years. Three years ago, Dawes paid $85,300 to install carpeting and new electrical fixtures throughout the office. Accumulated depreciation through the date that Dawes vacated the office was $51,000. What is the tax consequence of Dawes' abandonment of the carpeting and fixtures?

• A) Dawes has no tax consequence because it did not sell or exchange these assets.
• B) $34,300 capital loss.
• C) $34,300 ordinary loss.
• D) $34,300 Section 1231 loss.

---

Definitions:

Z-score

A statistical measure that quantifies the distance (in standard deviations) a data point is from the mean of a data set.

Standard Normal Distribution

A probability distribution with a mean of 0 and a standard deviation of 1.

Bottom

In a general context, the term can refer to the lowest part or point of something; however, without a specific context, its definition can vary widely.

Z-scores

An indicator that shows the number of standard deviations a data point is away from the average.