Which of the Following Gains Does Not Result Solely in an Ordinary

question 36

Multiple Choice

Which of the following gains does not result solely in an ordinary gain or loss?

• A)Sale of equipment held for less than a year.
• B)Sale of inventory.
• C)Sale of equipment where the gain realized exceeds the accumulated depreciation.
• D)Sale of equipment where the accumulated depreciation exceeds the gain realized.
• E)None of thesE.Depreciation recapture,resulting in ordinary income,is limited to accumulated depreciation.

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Definitions:

International Sales

Transactions involving the sale of goods between parties located in different countries.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform framework for international commerce.

Express Contract

A contract in which the terms and conditions are clearly stated and agreed upon by all parties, either verbally or in writing.

Finders Fee

A commission paid to an intermediary or the facilitator of a transaction.