Copper corporation sold machinery for $47,000 on december 31, 2019. the machinery had been purchased on january 2, 2016, for $60,000 and had an adjusted basis of $41,000 at the date of the sale. for 2019, what should copper report?

a. ordinary income of $6,000.
b. a § 1231 gain of $3,000 and $3,000 of ordinary income.
c. a § 1231 gain of $6,000.
d. a § 1231 gain of $6,000 and $3,000 of ordinary income.
e. none of these.

A.Ordinary income of $6,000

Explanation:

For 2019, copper should report an ordinary income of $ 6000

Purchase price of the machinery was $ 60,000.00

Adjusted basis is the book value which is $ 41,000.00

Sold at $ 47,000.00

Gain or loss= selling price - book value.

 = $ 47,000- $41,000

 = $ 6000

The transaction results in a profit of $ 6000

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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