Juanita Is a Sole Proprietor Who Has Some Outstanding Receivables

question 110

Multiple Choice

Juanita is a sole proprietor who has some outstanding receivables she wishes to sell.The receivables have a $16,000 FMV and a basis of $10,000.Juanita sells the receivables for $12,500.What gain or loss does Juanita recognize on the sale?

• A)$3,500 capital loss.
• B)$2,500 ordinary gain.
• C)$2,500 capital gain.
• D)$3,500 ordinary loss.

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Definitions:

Interference

The obstruction or modification of signals in telecommunications caused by the overlap of electromagnetic waves.

MAC Addresses

Distinct identifiers allocated to network interfaces for communication purposes at the data link layer within a network segment.

IP Addresses

Numerical labels assigned to each device connected to a computer network that uses the Internet Protocol for communication, serving as a network address.

Crosstalk Interference

A disturbance caused by the electromagnetic fields of one telecommunication signal affecting another, leading to degraded communication quality.