Nancy Acquired Office Equipment for Her Business Three Years Ago

question 80

Multiple Choice

Nancy acquired office equipment for her business three years ago at a cost of $15,000. During the current year, she exchanges the equipment for different equipment with a fair market value of $9,000. MACRS depreciation on the original equipment was $9,828. What is the amount and character of the gain recognized?

• A)No gain or loss.
• B)$3,828 Section 1231 gain.
• C)$3,828 Section 1245 ordinary income.
• D)$6,000 Section 1245 ordinary income
• E)$9,828 section 1245 ordinary income and $6,000 Section 1231 loss.

Comprehend bond interest calculations over fixed periods.

Calculate net proceeds from stock sales considering brokerage fees and trading costs.

Understand the concept of fractional shares and how they are handled in transactions.

Assess stock market indicators such as capital gains, dividends, and yield to make informed investment decisions.

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Definitions:

Epileptic Seizures

Episodes of abnormal electrical activity in the brain leading to various symptoms such as convulsions, sensory disturbances, or loss of consciousness, indicative of epilepsy.

Cerebral Cortex

The outermost layer of the brain, involved in high-level functions such as thought, memory, and consciousness.

Auditory Area

A region of the brain, specifically located in the temporal lobe, that is responsible for processing auditory information received from the ears.

Temporal Lobe

A region of the brain located beneath the lateral fissure on both cerebral hemispheres, involved in processing auditory information and encoding memory.