XYZ Company is a retail store whose only business operations are the sales of apparel. Which of the following asset transactions will result in a capital loss?

Choose the correct answer.

A.

XYZ replaces its display fixtures with newer fixtures, and sells the old fixtures to a smaller business for less than the XYZ originally paid for them.

B.

XYZ puts some seasonal apparel on clearance and sells a pair of shorts for less than the cost of the shorts.

C.

XYZ's building catches fire and is destroyed. The insurer of the building gives XYZ less money for the claim than the original purchase price of the building.

D.

XYZ makes an investment in the shares of M corp, which is a restaurant franchise. The shares are later sold for less than the original purchase price.