A Business Taxpayer Sells Inventory for $60,000

question 85

Multiple Choice

A business taxpayer sells inventory for $60,000.The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year.The taxpayer has:

• A) No gain or loss.
• B) Sold a long-term capital asset.
• C) Sold a short-term capital asset.
• D) An ordinary gain.
• E) None of the above.

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Definitions:

Caffeine

A stimulant drug found in coffee, tea, chocolate, and certain medications, known for its ability to enhance alertness and focus.

Reflective Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, and/or evaluating information.

John Dewey

An American philosopher, psychologist, and educational reformer whose ideas have been influential in education and social reform.

Active

Engaged in action; not passive.