MrAnd MrsSykes Operate a Very Profitable Small Business

question 97

Multiple Choice

Mr.and Mrs.Sykes operate a very profitable small business.This year,the Sykes recognized a $100,000 gain on sale of a trade name they had created and copyrighted for use in their business in 1994.Which of the following statements is true?

• A)The $100,000 gain is capital gain eligible for a preferential tax rate.
• B)The $100,000 gain is capital gain against which the Sykes can deduct any capital losses recognized this year.
• C)The $100,000 gain is ordinary business income.
• D)Statements a.and b.are true.

---

Definitions:

Side Effects

Secondary, typically undesirable effects of a drug or medical treatment, beyond the intended therapeutic effects.

Over-The-Counter Drug

Medications available for purchase without a prescription from a healthcare professional.

Lead Paint

Paint that contains lead, a toxic metal, used in buildings before its health risks were widely recognized.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.