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

question 124

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.

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Definitions:

Client-Visits

The instances when a service provider meets with their clients, either in person or virtually, for consultation or service delivery.

Planning Budget

A financial plan that estimates the revenue and expenses for an organization over a specific period, taking into account projected operations and initiatives.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions for interest and taxes.

Planning Budget

A financial plan that estimates the revenue and expenses for a particular period, often used for future financial planning.