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:

Unbiased Estimator

An attribute of an estimator that ensures the expected value of the estimate equals the parameter being estimated.

Population Parameter

A numeric value that describes a characteristic of the entire population, such as the mean or standard deviation.

Unbiased Estimator

A statistical estimator that, on average, produces values equal to the parameter being estimated.

Population Parameter

A characteristic or measure that describes an aspect of an entire population, such as mean or standard deviation.