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:

Traditional Chinese Medicine

A holistic medical system originating from China, utilizing practices such as acupuncture, herbal medicine, and Qi Gong to treat illness.

Ayurveda

The Indian system of medicine that views illness as a state of imbalance among the body’s systems.

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A form of abuse that involves the non-physical behaviors such as threats, insults, and isolation, which can damage a person's self-esteem and emotional well-being.

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A relaxation technique using self-chosen positive images to achieve specific health-related goals (i.e., stress reduction, pain control).