Which of the Following Creates Potential § 1245 Depreciation Recapture

question 56

Multiple Choice

Which of the following creates potential § 1245 depreciation recapture and potential § 1231 gain?

• A) Depreciable office furniture held more than one year and sold for more than its original cost.
• B) Amortizable goodwill held more than one year and disposed of for less than its adjusted basis.
• C) Land held more than one year and sold for more than was paid for it.
• D) A note receivable held more than one year and sold for less than was paid for it.
• E) None of the above.