The Sale of Machinery for More Than the Original Cost

question 75

Multiple Choice

The sale of machinery for more than the original cost basis (before depreciation) , used in a trade or business, and held for more than one year results in the following types of gain or loss?

• A) Capital and Ordinary.
• B) Ordinary only.
• C) Capital and §1231.
• D) §1245 and §1231.
• E) None of these.

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Definitions:

Symmetric

Refers to a balance or similarity between two halves of an object, dataset, or distribution where each side is a mirror image of the other.

Percent Frequency

The relative frequency of an event or characteristic expressed as a percentage of the total number of occurrences or observations.

Relative Frequency

The ratio of the number of times a particular value occurs in a dataset to the total number of occurrences.