Which of the Following Transactions Results Solely in §1245 Gain

question 4

Multiple Choice

Which of the following transactions results solely in §1245 gain?

• A) Sale of machinery held for less than one year.
• B) Sale of machinery held for more than one year and where the gain realized exceeds the accumulated depreciation.
• C) Sale of machinery held for more than one year and where the accumulated depreciation exceeds the gain realized.
• D) Sale of land held for more than one year and where the amount realized exceeds the adjusted basis.
• E) None of the choices are correct.

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Definitions:

Convergent Thinking

A thought process that narrows in on a single, correct solution to a problem, emphasizing analytical and logical reasoning.

Divergent Thinking

A thought process or method used to generate many creative ideas by exploring many possible solutions, often in a spontaneous, free-flowing manner.

Final Topic

The ultimate subject or theme that has been chosen for study or discussion.

Creativity

The ability to produce original, diverse, and valuable ideas or solutions.