Irby Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Irby's net Section 1231 gains and (losses)reported on its tax returns through 2018. In 2019,Irby recognized a $14,750 gain on the sale of business land.How is this gain characterized on Irby's tax return?
A)$14,750 Section 1231 gain.
B)$10,890 ordinary gain and $9,415 Section 1231 gain.
C)$14,750 ordinary gain.
D)None of the choices are correct.

Question

Irby Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Irby's net Section 1231 gains and (losses)reported on its tax returns through 2018.  In 2019,Irby recognized a $14,750 gain on the sale of business land.How is this gain characterized on Irby's tax return?
A)$14,750 Section 1231 gain. 
B)$10,890 ordinary gain and $9,415 Section 1231 gain. 
C)$14,750 ordinary gain. 
D)None of the choices are correct.

Quizplus · Accepted Answer

The Answer of Irby Inc.was incorporated in 2013 and adopted a calendar year.Here is a schedule of Irby's net Section 1231 gains and (losses)reported on its tax returns through 2018.  In 2019,Irby recognized a $14,750 gain on the sale of business land.How is this gain characterized on Irby's tax return?
A)$14,750 Section 1231 gain. 
B)$10,890 ordinary gain and $9,415 Section 1231 gain. 
C)$14,750 ordinary gain. 
D)None of the choices are correct.

Irby IncWas Incorporated in 2013 and Adopted a Calendar Year