Delour Inc

question 9

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:

Ethical Dilemma

A situation where one faces a decision between two morally correct actions that conflict in some way.

Switching Members

The act of replacing or rotating members within a team or group, often to bring new perspectives or skills.

Decision-Making Model

A conceptual framework that describes the sequence of steps taken to make decisions, often including problem identification, information gathering, alternative evaluation, and selection.

Human Logic

The process of reasoning and thinking that is characteristic of the human mind, including the ability to draw inferences and make conclusions based on information.