During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are
A) LTCG of $30,000.
B) Sec. 1231 gain of $30,000.
C) Sec. 1245 ordinary income $30,000.
D) Sec. 1250 ordinary income of $30,000.
C) Sec. 1245 ordinary income $30,000.
You might also like to view...
Which researcher extended House’s work on transformational leadership?
A. Burns B. Stogdill C. Bass D. Greenleaf
When texting a client, what types of writing style would be appropriate?
A) Common symbols and abbreviations such as "u" or "idk" B) Complete sentences with no abbreviations C) Hashtags D) Emoticons E) Phrases instead of sentences, and abbreviations wherever possible
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is:
A. Debit Accounts Payable $1,800; credit Cash $1,800. B. Debit Merchandise Inventory $1,600; credit Cash $1,600. C. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. D. Debit Accounts Payable $1,600; credit Cash $1,600. E. Debit Cash $1,600; credit Accounts Payable $1,600.
Erin knows exactly what benefits she will receive when she retires. She has worked for the same organization for 20 years and will receive 65% of the average of her two highest years of pay. Erin’s retirement plan is a ______ plan.
A. defined benefit B. defined contribution C. vesting D. experience