Proctor Inc

question 6

Multiple Choice

Proctor Inc. was incorporated in 2004 and adopted a calendar year. Here is a schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2009. In 2010, 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:

Guidelines For Good Health

Recommend practices or behaviors that promote physical and mental well-being.

SPF 15+

Designates a level of sun protection factor in sunscreen products that blocks approximately 93% of UVB rays, with the "+" indicating protection above 15.

Use Sunscreen

The practice of applying a lotion or cream that contains compounds to block or absorb ultraviolet (UV) sunlight, protecting the skin from sunburn.

Lumbar Muscles (lower Back)

A group of muscles in the lower back region that support the spine, assist in movement, and maintain posture.