Sumner Sold Equipment That It Uses in Its Business for $30,000.Sumner

question 57

Multiple Choice

Sumner sold equipment that it uses in its business for $30,000.Sumner bought the equipment a few years ago for $80,000 and has claimed $40,000 of depreciation expense.Assuming that this is Sumner's only disposition during the year,what is the amount and character of Sumner's gain or loss?

• A)$10,000 §1231 loss.
• B)$10,000 §1245 loss.
• C)$50,000 ordinary loss.
• D)$10,000 capital loss.
• E)None of thesE.There is no depreciation recapture when a §1231 asset is sold at a loss.

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Definitions:

Mate Selection

The process by which individuals choose their partners based on various factors such as genetic compatibility, physical attractiveness, and social status.

Reproduction

The biological process by which new individual organisms are produced, either asexually from a single parent or sexually from two parents.

Sexual Relationship

An intimate relationship between individuals that involves sexual activity.

Optimal Mating Strategy

A concept in evolutionary psychology that suggests individuals select mates in a way that will maximize their reproductive success and enhance the survival and quality of their offspring.