Red Company Had an Involuntary Conversion on December 23, 2012

question 126

Multiple Choice

Red Company had an involuntary conversion on December 23, 2012.The machinery had been acquired on April 1, 2010, for $49,000 and its adjusted basis was $14,200.The machinery was completely destroyed by fire and Red received $10,000 of insurance proceeds for the machine and did not replace it.This was Red's only casualty or theft event for the year.As a result of this event, Red initially has:

• A)$10,000 § 1231 loss.
• B)$10,000 § 1245 recapture gain.
• C)$4,200 casualty loss.
• D)$4,200 § 1231 loss.
• E)None of the above.

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Definitions:

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and secondary sexual characteristics.

Gender Schemas

Cognitive structures that represent ideas about the gender-based characteristics of objects, traits, and behaviors in society.

Gender Role Socialization

The process through which individuals learn the gender norms and behaviors expected of them by society based on their sex.

Gender Identity

The thoughts and feelings that make up a person’s sense of being a boy/man or a girl/woman. This cognitive information is stored in each person’s gender schemas.