In 2014 mary sells for 15000 a machine used in her business, Ask an Expert

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In 2014, Mary sells for $15,000 a machine used in her business. The property was purchased on May 1, 2012, at a cost of $12,500. Mary has claimed depreciation on the machine of $4,750. What is the amount and nature of Mary's gain as a result of sale of the machine?

A. $7,250 Section 1231

B. $7,250 ordinary income under Section 1245

C. $2,500 ordinary income and $4,750 Section 1231 gain

D. $2,500 Section 1231 gain and $4,750 ordinary income under Section 1245

E. None of the above

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91543373

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