What should Copper Corporation report

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Problem - Copper Corporation sold machinery for $42,000 on December 31, 2015. The machinery had been purchased on January 2, 2012, for $60,000 and had an adjusted basis of $41,000 at the date of the sale. For 2015, 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.

e. None of the above.

Reference no: EM132855739

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