题目
题目
单项选择题

Copper Corporation sold machinery used in its trade or business for $47,000 on December 31, 2018. The machinery had been purchased on January 2, 2015, for $60,000 and had an adjusted basis of $41,000 at the date of the sale. For 2018, what amount(s) should Copper Corporation include in its gross income related to this sale?

选项
A.50% of the realized gain of $6,000 (i.e., $3,000) is treated as ordinary income under the section 1245 depreciation recapture rules and the remainder of the realized gain is treated as long-term capital gain because the machinery is a section 1231 asset.
B.The entire realized gain of $6,000 is treated as ordinary income under the section 1245 depreciation recapture rules.
C.The machinery is a section 1231 asset, so the entire realized gain of $6,000 should be treated as a long-term capital gain.
D.Since Copper Corporation claimed $19,000 of depreciation on the machinery, Copper must include $19,000 of ordinary income (recapture).
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思路分析
The question centers on how depreciation recapture under section 1245 applies when a depreciable asset is sold for more than its adjusted basis. Option 1 suggests that 50% of the $6,000 gain is ordinary and the rest capital gain because the asset is a 1231 asset. This is not accurate for 1245 recapture rules; the recapture is tied to the amount of depreciation previously taken, and the entire gain up to that amount ......Login to view full explanation

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