During the year henry a sole proprietor sold for 65000 a, Ask an Expert

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During the year, Henry, a sole proprietor, sold for $65,000 a machine that was used in his business. The machine had been purchased in 2003 for $50,000, and when it was sold it had an adjusted basis of $30,000. How should this gain be treated?

Ordinary income of $35,000

Section 1231 gain of $35,000

Section 1231 gain of $20,000 and ordinary income of $15,000

Section 1231 gain of $15,000 and ordinary income of $20,000

None of the above

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M982099

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