In 2012, Joe Purchased Land for $73,500 for Use in His

question 24

Multiple Choice

In 2012, Joe purchased land for $73,500 for use in his business. He sold it in 2015 for $100,000. What is the gain on the sale before any netting?

• A) $26,500 Section 1231 gain.
• B) $26,500 Section 1245 gain.
• C) $26,500 Section 1250 gain.
• D)$26,500 ordinary income.

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Definitions:

Secure Source

A reliable and protected origin from which information, materials, or goods are obtained.

Tying Agreement

A contractual agreement where the sale of one product is conditioned on the purchase of another product or service.

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic business practices and ensuring fair competition.

Market Leader

A company with the highest sales or market share in a particular market.