Verdum,Inc

question 138

Multiple Choice

Verdum,Inc.,has a 2011 net § 1231 gain of $57,000 and had a $12,000 net § 1231 loss in 2010.For 2011,Verdum's net § 1231 gain is treated as:

• A) $45,000 long-term capital gain and $12,000 ordinary loss.
• B) $57,000 ordinary gain.
• C) $45,000 long-term capital gain and $12,000 ordinary gain.
• D) $57,000 capital gain.
• E) None of the above.

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Definitions:

Population

Refers to the total number of people living in a particular area or country at a specific time.

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Economically Inefficient

A situation where resources are not allocated optimally, leading to waste or the inability to maximize value or output.

Nonrivalry

The idea that one person’s benefit from a certain good does not reduce the benefit available to others; a characteristic of a public good.