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

question 103

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.
-On December 1,2011,George paid $17,500 for a painting.On October 31,2013,he sells the painting for $26,750.

• 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

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Definitions:

River Terraces

Step-like landforms alongside rivers, formed by the erosion of sediments and changes in water level.

River Terraces

Step-like landforms found alongside river valleys, created as a river cuts downward into its bed while leaving remnant levels of previous floodplain as terraces.

Distributaries

Branches of a river or stream that diverge from the main channel and flow separately into the sea or another body of water.

Delta

A geological feature found where a river flows into slower waters or a standing body of water, created by the accumulation of sediment transported by the river.