A business taxpayer sells inventory for $80,000.The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year.The taxpayer has:
A)No gain or loss.
B)Sold a long-term capital asset.
C)Sold a short-term capital asset.
D)An ordinary gain.
E)None of these.

Question

Quizplus · Accepted Answer

Since the inventory was held for more than one year and was sold by a business taxpayer, the gain is considered as an ordinary gain, not a capital gain. Therefore, Option D is the correct answer.

A Business Taxpayer Sells Inventory for $80,000