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1- Indicate the character of each of the following assets (i.e. capital, ordinary , or 1231): a. Automobile held by a car dealership to sell

1- Indicate the character of each of the following assets (i.e. capital, ordinary , or 1231):

a. Automobile held by a car dealership to sell to customers

b. Automobile held by an individual for personal use

c. Automobile held by a corporation for business use

2- Gold Corporation has determined its taxable income as $222,000 before considering the results of its 1231 and capital transactions. Gold has a net 1231 gain of $16,000, a STCL of $9,000, a LTCL of $48,000, and a STCG of $29,000. Gold has no non-recaptured net Section 1231 losses from prior years and does not have any capital loss carry-forwards.

a. What (if any) are the amount and nature of its capital loss carryover?

b. What is Gold Corporations taxable income?

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