Glenn Sells a Piece of Equipment Used in His Business

Multiple Choice

Glenn sells a piece of equipment used in his business for $31,500.The equipment was purchased on July 1,2014,at a cost of $22,000.Glenn has taken $6,600 of depreciation on the equipment.What are the amount and classification of the gain on the sale by Glenn?

A) $16,100 ordinary income under Section 1245.
B) $9,500 Section 1231 gain.
C) $16,100 Section 1231 gain.
D) $6,600 ordinary income under Section 1245 and $9,500 Section 1231 gain.