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On February 5, 2010, Able, Inc. sold equipment used in its

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business for $10,000. Able purchased...
On February 5, 2010, Able, Inc. sold equipment used in its business for $10,000. Able purchased the equipment on May 30, 2006 for $12,000 and has properly claimed $8,000 of depreciation deductions for tax purposes. As a result of this sale, Able will report:



a. A long-term capital gain of $6,000.

b. A §1231 gain of $6,000.

c. Ordinary income of $6,000.

d. A §1231 loss of $2,000.
Submitted: 6 years ago.Category: Tax
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4/1/2011
Tax Professional: RD, Certified Public Accountant (CPA) replied 6 years ago
RD
RD, Certified Public Accountant (CPA)
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Satisfied Customers: 8,784
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RD :

b. A §1231 gain of $6,000.

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