Copper Corporation Sold Machinery for $27,000 on December 31, 2012

question 56

Multiple Choice

Copper Corporation sold machinery for $27,000 on December 31, 2012.The machinery had been purchased on January 2, 2009, for $30,000 and had an adjusted basis of $21,000 at the date of the sale.For 2012, what should Copper Corporation report?

• A)Ordinary income of $6,000.
• B)A § 1231 gain of $3,000 and $3,000 of ordinary income.
• C)A § 1231 gain of $6,000.
• D)A § 1231 gain of $6,000 and $3,000 of ordinary income.
• E)None of the above.