Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Hugo Inc., a calendar year taxpayer, sold two operating assets this year. The first sale generated a $38,700 Section 1231 gain, and the second sale generated a $59,400 Section 1231 loss. As a result of these sales, Hugo should recognize: Multiple Choice $20,700 ordinary loss $38,700 Section 1231 gain treated as capital gain and $59,400 ordinary loss $20,700 capital loss None of these choices are correct

Sagot :

abiolataiwo2015

Answer:

$20,700 ordinary loss

Explanation:

Based on the information given if the first Operating assets generated a gain of the amount of $38,700 while the second assets generated a loss of the amount of $59,400 after been sold out which indicate or means that Hugo should recognize the amount of $20,700 ORDINARY LOSS which is calculated as :

Ordinary loss =-$59,400+$38,700

Ordinary loss =-$20,700

Therefore As a result of these sales, Hugo should recognize:$20,700 ORDINARY LOSS

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.