Cassie owns equipment ($45,000 basis and $30,000 FMV)and a building ($152,000 basis and $158,000 FMV),which are used in Cassie's business.Both assets were acquired two years ago.The equipment and the building are destroyed in a fire,and Cassie collects insurance proceeds equal to the assets' FMV.The tax result to Cassie for this transaction is a
A)$15,000 Sec.1231 loss and a $6,000 ordinary gain.
B)$15,000 ordinary loss and a $6,000 ordinary gain.
C)$15,000 ordinary loss and a $6,000 Sec.1231 gain.
D)$15,000 Sec.1231 loss and a $6,000 Sec.1231 gain.

Question

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The Answer of Cassie owns equipment ($45,000 basis and $30,000 FMV)and a building ($152,000 basis and $158,000 FMV),which are used in Cassie's business.Both assets were acquired two years ago.The equipment and the building are destroyed in a fire,and Cassie collects insurance proceeds equal to the assets' FMV.The tax result to Cassie for this transaction is a
A)$15,000 Sec.1231 loss and a $6,000 ordinary gain.
B)$15,000 ordinary loss and a $6,000 ordinary gain.
C)$15,000 ordinary loss and a $6,000 Sec.1231 gain.
D)$15,000 Sec.1231 loss and a $6,000 Sec.1231 gain.

Cassie Owns Equipment ($45,000 Basis and $30,000 FMV)and a Building