Copper Corporation sold machinery for $47,000 on December 31, 2018. The machinery had been purchased on January
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Question:
Copper Corporation sold machinery 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 should Copper Corporation report?
a. Ordinary income of $6,000.
b. A 1231 gain of $3,000 and $3,000 of ordinary income.
c. A 1231 gain of $6,000.
d. A 1231 gain of $6,000 and $3,000 of ordinary income
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