Sumner Sold Equipment That It Uses in Its Business for $30,000

question 41

Multiple Choice

Sumner sold equipment that it uses in its business for $30,000. Sumner bought the equipment a few years ago for $80,000 and has claimed $40,000 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?

• A)$10,000 §1231 loss.
• B)$10,000 §1245 loss.
• C)$50,000 ordinary loss.
• D)$10,000 capital loss.
• E)None of the choices are correct.

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Ethnic Minorities

Groups within a community which differ from the majority population in race, national or cultural origin, and often have distinct social and economic practices.

Discrimination

Unfair treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

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The mean wage calculated by dividing the total wage bill by the number of wage earners; it represents the midpoint of wage distribution in a given area or sector.

Average Wages

The mean earnings of workers in a specific region, industry, or occupation, reflecting the general level of compensation.