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NEW QUESTION: 1
Hall, a divorced person and custodian of her 12-year old child, filed her 1990 federal income tax return as head of a household. She submitted the following information to the CPA who prepared her
1990 return:
* In 1990, Hall sold an antique that she bought in 1980 to display in her home. Hall paid $800 for the antique and sold it for $1,400, using the proceeds to pay a court ordered judgment.
The $600 gain that Hall realized on the sale of the antique should be treated as:
A. An involuntary conversion.
B. A nontaxable antiquities transaction.
C. Ordinary income.
D. Long-term capital gain.
Answer: D
Explanation:
Explanation
Choice "b" is correct. The gain should be treated as a long-term capital gain because the property was held for more than one year and was sold for more than it cost.
Choice "a" is incorrect. Because Hall was not in the business of selling antiques, the profit from the sale will be treated as a gain from the disposition of a capital asset, not ordinary income.
Choice "c" is incorrect. This transaction does not qualify as an involuntary conversion. In order to be treated as an involuntary conversion, the transaction must result from a condemnation of property or a destruction or loss from theft or casualty.
Choice "d" is incorrect. An obvious distracter.
NEW QUESTION: 2
HOTSPOT
You are evaluating how many servers are required for the planned Lync Server 2013
deployment.
You need to identify which components can be collocated on the Front End Servers and
which components must be installed on a new server.
Which components should you identify for which servers?
To answer, configure the appropriate components in the answer area.
Answer:
Explanation:
NEW QUESTION: 3
Answer:
Explanation:
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