Eugene Forest sold the following assets: stock acquired 5 years ago (cost $10,000) for $15,000, business equipment held 3 years (cost $28,000; adjusted basis $ 22,000) for $30,000, inventory held 2 years (cost $11,000) for $14,000, and personal car, held 2 years (cost $8,000) for $12,000. What is the amount of Forest's Sec. 1231 gain or loss? a) S 2.000 b) $ 8,000 c) $20,000 d) $29,000 e) None of the above

Question

Business

Wendy Casey

13 October, 03:21

Eugene Forest sold the following assets: stock acquired 5 years ago (cost $10,000) for $15,000, business equipment held 3 years (cost $28,000; adjusted basis $ 22,000) for $30,000, inventory held 2 years (cost $11,000) for $14,000, and personal car, held 2 years (cost $8,000) for $12,000. What is the amount of Forest's Sec. 1231 gain or loss? a) S 2.000 b) $ 8,000 c) $20,000 d) $29,000 e) None of the above

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Answers (1)

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Aurora Burch · Answer 1

Option A is correct one.

$2000

Explanation:

So we only consider business equipment which is held for 3 years

Sales value=$30000

Less : Cost=$ (28000)

Gain value=30000-28000

=$2000