Which of the Following Creates Potential § 1245 Depreciation Recapture

question 23

Multiple Choice

Which of the following creates potential § 1245 depreciation recapture and potential § 1231 gain?

• A)Depreciable equipment held more than one year and sold for more than its original cost.
• B)Amortizable goodwill held more than one year and disposed of for less than its adjusted basis.
• C)Land held more than one year and sold for more than was paid for it.
• D)Inventory held more than one year and sold for more than was paid for it.
• E)None of the above.

---

Definitions:

Jim Crow

Laws and practices in the United States that enforced racial segregation and discrimination against African Americans from the late 19th century into the 1960s.

Thurgood Marshall

The first African American Justice of the U.S. Supreme Court, serving from 1967 to 1991, known for his advocacy for civil rights and his victory in Brown v. Board of Education.

Charles Hamilton Houston

A prominent African American lawyer who played a significant role in dismantling Jim Crow laws and mentoring future leaders like Thurgood Marshall.

Social Engineer

A professional who applies principles from social sciences to address and solve complex social problems and improve society through innovation.