Which of the following results in an ordinary gain or loss?
A)Sale of a machine at a gain.
B)Sale of stock held for investment.
C)Sale of a §1231 asset.
D)Sale of inventory.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The sale of inventory results in an ordinary gain or loss, as it is considered a normal part of a business's operations. The other options may result in capital gains or losses or §1231 gains or losses, which are taxed differently.

Which of the Following Results in an Ordinary Gain or Loss