Which of the following results in an ordinary gain or loss?
A) Sale of a machine at a gain.
B) Sale of stock held for investment.
C) Sale of a §1231 asset.
D) Sale of inventory.
E) None of these.

Question

Quizplus · Accepted Answer

The sale of inventory results in an ordinary gain or loss. Option A results in a §1231 gain or loss, Option B results in a capital gain or loss, and Option C results in a §1231 gain or loss. Therefore, the correct option is D.

Which of the Following Results in an Ordinary Gain or Loss