Albert's Sole Proprietorship Owns the Following Assets: * Potential

question 42

Multiple Choice

Albert's sole proprietorship owns the following assets: * Potential § 1245 recapture of $45,000.
** Straight-line depreciation was used.
Albert sells his sole proprietorship for $500,000. Calculate Albert's recognized gain or loss and classify it as capital or ordinary.

• A) $230,000 ordinary income.
• B) $230,000 capital gain.
• C) $115,000 ordinary income and $115,000 capital gain.
• D) $110,000 ordinary income and $120,000 capital gain.
• E) None of the above.

---

Definitions:

Self-Esteem

The subjective evaluation or appraisal of one's own worth, capabilities, and overall value.

Prejudices

Preconceived opinions that are not based on reason or actual experience.

Scapegoat Theory

A psychological concept where individuals or groups are unfairly blamed for problems or negative outcomes, often diverting attention from the real causes.

Negative View

An attitude or perspective that emphasizes the bad or undesirable aspects of something.