During 2013,Thomas Has a Net Section 1231 Gain of $57,000

question 81

Multiple Choice

During 2013,Thomas has a net Section 1231 gain of $57,000.In 2012,Thomas reported a net Section 1231 loss of $60,000.What is the character of the 2013 gain?

• A)$60,000 long-term capital gain.
• B)$60,000 ordinary gain.
• C)$57,000 ordinary gain.
• D)$57,000 long-term capital loss.
• E)$57,000 long-term capital gain.

---

Definitions:

Financial Measures

Metrics used to assess a company's performance in terms of profitability, liquidity, solvency, and operational efficiency.

Bottleneck

A point of congestion or blockage in a production system that significantly reduces efficiency.

Theory of Constraints

A management philosophy focusing on identifying and relieving bottlenecks in processes to improve performance.

External Failure Cost

Costs incurred when a product fails to meet quality standards after it is delivered to the customer, including returns, repairs, and lost reputation.