Dinah Owned Land with a FMV of $130,000 (Adjusted Basis

question 83

Multiple Choice

Dinah owned land with a FMV of $130,000 (adjusted basis $120,000) which is investment property (a capital asset) .Dinah owned a second tract of land,a 1231 asset,with a FMV of $46,000 (adjusted basis $50,000) .Both tracts were acquired in 2001 and condemned by the state this year.The state paid an amount equal to FMV.If there are no other transactions involving capital assets or 1231 assets,Dinah must report on her current year return

• A)$6,000 net ordinary income.
• B)$6,000 net section 1231 gain treated as a net capital gain.
• C)a LTCG of $10,000 and a 1231 loss of $4,000.
• D)a LTCG of $10,000 and a nondeductible loss of $4,000.

---

Definitions:

Marginally Competitive

Describes markets or situations where small changes in performance or price can significantly affect the competitive position of firms or products.

Account Size

Account size refers to the total value or volume of assets held in an individual's or entity's investment or trading account.

Increase Borrowing

The act of obtaining more funds through loans, typically to support business operations or expansion.

Cash Cycle

The time between cash disbursement and cash collection.