A Net Sec1231 Gain Is Treated as Ordinary Income to the Extent

question 34

True/False

A net Sec.1231 gain is treated as ordinary income to the extent of any nonrecaptured net Sec.1231 losses for the preceding five years.

---

Definitions:

Equity Theory

A theory that proposes individuals are motivated by a sense of fairness in the comparison of their own input-output ratio to that of others.

Perceived Inequity

A feeling experienced by employees when they believe the rewards they receive are not proportional to their contributions when compared to others.

Contribution

The effort or impact an individual or group provides towards achieving the objectives of an organization.

Equity Theory

A theory of motivation that suggests employees are motivated to achieve a balance between their inputs and outputs in the workplace, comparing themselves to others in similar situations.