Tan Inc. has a 20x2 $50,000 long-term capital gain included in its $185,000 taxable income. Which of the following is correct?

Tan will benefit from an alternative tax on net capital gains computation.

Tan's regular tax on taxable income will be the same as its tax using an alternative tax on the net capital gains approach.

Tan's $50,000 net capital gain is not taxable.

Tan's regular tax on taxable income will be greater than its tax using an alternative tax on the net capital gain approach.

None of the above

An individual had the following gains and losses during 20x2 on property held for the long-term holding period: sale of Orange common stock ($3,000 gain), sale of real property used in the taxpayer's business ($1,800 loss), and destruction of real property used in the taxpayer's business by fire ($1,000 loss). Which of the following is correct? (Points : 2)

The fire loss would reduce the real property sale loss.

The fire loss would reduce the stock sale gain.

The sale of real property loss would be netted against the stock sale gain.

The sale of real property is a 1231 loss.

None of the above

Which of the following creates potential 1245 depreciation recapture? (Points : 2)

A. Amortization of purchased goodwill

B. Section 179 immediate expense deduction

D. An increase in the value of the property

E. A decrease in the value of the property

F. A and B

Section 1245 property would include all of the following except _____. (Points : 2)

amortizable personal property such as goodwill, patents, copyrights, and leaseholds of 1245 property

Section 179 immediate expensing of depreciable tangible personal property costs

elevators and escalators acquired before January 1, 1987

stocks and bonds

amortization of orestation expenditures