On February 1, 2020, Lex purchased equipment that was used in her surfing business for...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On February 1, 2020, Lex purchased equipment that was used in her surfing business for $70,000. Lex deducted $20,000 of depreciation. On December 31, 2022. Lex proceeded to sell this equipment for $100,000.
What is the appropriate amount of gain that should be reported under section 1231 and section 1245?
A) Section 1231: $20,000; Section 1245: $30,000 gain
B) Section 1231: $30,000; Section 1245: $20,000 gain
C) Section 1231: $50,000; Section 1245: $0 gain
D) Section 1231: $0; Section 1245: $50,000 gain
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
