A corporation sells a machine used for 9 years in its business for $22,000.The machine originally cost $120,000 and was fully depreciated.Its gain will be treated as:
A)Capital gain
B)Section 1231 gain
C)Section 1245 recapture
D)Section 1250 recapture

Question

Quizplus · Accepted Answer

Since the machine was fully depreciated, the entire amount of the sale will be treated as a gain. This gain will be classified as a Section 1231 gain, which is a capital gain on the sale of depreciable property used in a trade or business.

A Corporation Sells a Machine Used for 9 Years in Its