A Business Taxpayer Sells Inventory for $80,000

question 11

Multiple Choice

A business taxpayer sells inventory for $80,000. The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year. The taxpayer has:

• A) No gain or loss.
• B) Sold a long-term capital asset.
• C) Sold a short-term capital asset.
• D) An ordinary gain.
• E) None of the above.

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Definitions:

International Monetary Fund

An international organization established in 1944 to promote global monetary cooperation, secure financial stability, and facilitate international trade.

International Banking Institution

A financial entity operating across national borders, dealing in currency exchange, foreign investment, and international loans.

Government Financing Institution

A state-owned or government-backed entity that provides financial services, including loans and guarantees, to support economic development.

Commercial Letter

a written document used in business transactions, often to communicate formally between companies or organizations.