Sammy sells a piece of specialized equipment with a high resale value) used in his business for $41,650 on September 10,2016.The equipment was purchased on May 20,2013 for $32,000.Sammy has taken $9,200 of depreciation on the equipment.What are the amount and classification of the gain on the sale by Sammy?
A) $9,200 Section 1231 gain and $9,650 Section 1245 ordinary income.
B) $18,850 Section 1231 gain.
C) $9,200 ordinary income under Section 1245 and $9,650 Section 1231 gain.
D) $9,200 ordinary income under Section 1250 and $9,650 Section 1231 gain.
Correct Answer:
Verified
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