Which of the following gains does not result solely in an ordinary gain or loss?
A) Sale of equipment held for less than a year.
B) Sale of inventory.
C) Sale of equipment where the gain realized exceeds the accumulated depreciation.
D) Sale of equipment where the accumulated depreciation exceeds the gain realized.
E) None of these.

Question

Quizplus · Accepted Answer

The sale of equipment where the gain realized exceeds the accumulated depreciation can result in a capital gain, not just an ordinary gain, due to the recapture of depreciation under tax rules.

Which of the Following Gains Does Not Result Solely in an Ordinary