Question
Question 2721 pts Which of the following is NOT true regarding the valuation of inventory for income tax purposes? Group of answer choices Inventory rules
Question 2721 pts
Which of the following is NOT true regarding the valuation of inventory for income tax purposes?
Group of answer choices
Inventory rules should follow the best accounting practice in a trade or business
The valuation of inventory should clearly reflect the income of the business
A physical inventory must be taken on the last day of the tax year.
Inventory should be valued at lower of cost or market
Question 2701 pts
George sold a computer that was used 100% in his business for $500. The computer was fully depreciated on the date of the sale, and subject to depreciation recapture per Internal Revenue Code Section 1245. The gain on the sale was $500. There was $300 of depreciation on the computer that was recaptured per Internal Revenue Code Section 1245. Which of the following is true in regards to the $300 of depreciation recapture?
Group of answer choices
The $300 will be treated as a short term capital gain.
The $300 will be treated as a long term capital gain.
The $300 will be treated as ordinary income.
The $300 is non taxable income.
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