Classify the Gain or Loss on Each of George's Assets

question 120

Multiple Choice

Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-George's construction company completed 5 homes during February 2012.He sells one of the homes in March 2013 at a $37,000 gain.

• A)Long-term capital
• B)Short-term capital
• C)Collectible gain
• D)Section 1231
• E)Section 1245
• F)Section 1250
• G)Ordinary income/loss
• H)Nontaxable/nondeductible

---

Definitions:

Exchange

The act of giving one thing and receiving another, especially of the same type or value, in return.

Things Of Value

Items, services, or concepts that hold worth or usefulness to individuals or organizations.

Promotional Capital

Resources and assets utilized in the promotion of a product, service, or brand, including financial investment, promotional tools, and brand equity.

E-Mail Address

A unique identifier for an email account, enabling the sending and receiving of electronic messages over the internet.