Delour Inc

question 52

Multiple Choice

Delour Inc. was incorporated in 2004 and adopted a calendar year. Here is a schedule of Delour's net Section 1231 gains and (losses) reported on its tax returns through 2009. In 2010, Delour recognized a $50,000 gain on the sale of business land. How is this gain characterized on Delour's tax return?

• A) $50,000 Section 1231 gain
• B) $12,000 ordinary gain and $38,000 Section 1231 gain
• C) $16,900 ordinary gain and $33,100 Section 1231 gain
• D) $50,000 ordinary gain

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Definitions:

Business Strategy

A plan of action designed to achieve a long-term or overall aim in the business context.

Merit Raises

A method of increasing an employee's pay based on their performance.

Pay Ranges

Sets of varying salaries that an employer is willing to pay for a particular job, reflecting experience, skill level, and responsibilities.

Merit Bonuses

Financial rewards given to employees based on their performance, achievements, or meeting certain criteria.