Which of the Following Results in an Ordinary Gain or Loss

question 30

Multiple Choice

Which of the following results in an ordinary gain or loss?

• A)Sale of a machine at a gain.
• B)Sale of stock held for investment.
• C)Sale of a §1231 asset.
• D)Sale of inventory.
• E)None of thesE.Inventory is always an ordinary asset.Sale of a §1231 asset can generate either ordinary gain or capital loss.

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Definitions:

Operant Conditioning

A pedagogical strategy where the frequency of a behavior is adjusted using encouragement or suppression.

Negative Reinforcement

A type of operant conditioning that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Unfavorable Stimulus

A stimulus considered unpleasant or adverse, which can alter behavior when removed following a specific action.

Favorable Stimulus

A stimulus that elicits a positive response or behavior from an organism.