Red Company Had an Involuntary Conversion on December 23, 2012

question 126

Multiple Choice

Red Company had an involuntary conversion on December 23, 2012.The machinery had been acquired on April 1, 2010, for $49,000 and its adjusted basis was $14,200.The machinery was completely destroyed by fire and Red received $10,000 of insurance proceeds for the machine and did not replace it.This was Red's only casualty or theft event for the year.As a result of this event, Red initially has:

• A)$10,000 § 1231 loss.
• B)$10,000 § 1245 recapture gain.
• C)$4,200 casualty loss.
• D)$4,200 § 1231 loss.
• E)None of the above.

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Definitions:

Gender-Aschematic

Pertaining to individuals who do not consistently use gender categories as a way of processing information about people.

Menstruation

The monthly discharge of blood and mucosal tissue from the inner lining of the uterus through the vagina.

Preferred Sex

Refers to an individual's inclination or choice towards a particular gender with whom they feel a sexual attraction or alignment.

Mixed Groups

Mixed groups are composed of individuals from different backgrounds, such as gender, race, ethnicity, or age, contributing to diversity in discussions or activities.