Orange,Inc

question 60

Multiple Choice

Orange,Inc.,has a 2011 net § 1231 gain of $45,000 and had a $72,000 net § 1231 loss in 2010.For 2011,Orange's net § 1231 gain is treated as:

• A) $45,000 ordinary loss.
• B) $45,000 ordinary gain.
• C) $45,000 capital loss.
• D) $45,000 capital gain.
• E) None of the above.

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Definitions:

Product Costs

Direct and indirect costs associated with producing a product, including materials, labor, and overhead expenses.

Inventoriable Costs

Costs associated with the purchase or production of goods that are considered assets when incurred and expensed as the goods are sold.

Period Costs

Expenses that are not directly tied to the production of goods and are instead allocated to the time period in which they are incurred.

Controllable Costs

Expenses that a manager or business unit has the authority to influence or change in the short term.