Proctor Inc

question 21

Multiple Choice

Proctor Inc.was incorporated in 2011 and adopted a calendar year.Here is a schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2016. In 2017,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:

Bulbospongiosus

A muscle of the perineum that plays a role in sexual function and urination.

Ischiocavernosus

A muscle that helps stiffen the penis or clitoris during sexual arousal by compressing the base of the erectile tissues.

Semispinalis Thoracis

A muscle in the back that extends from the thoracic vertebrae to the base of the skull, helping in the extension and rotation of the spine.

Multifidus

A muscle located in the spine that stabilizes the vertebrae and assists with spinal movements.