What should Taxpayer report

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Question - Taxpayer's unincorporated business sold machinery for $47,000 on November 22, 2020. The machinery had been purchased on June 16, 2018 for $60,000 and had an adjusted basis of $41,000 at the date of the sale. For 2020, what should Taxpayer report?

a. A § 1231 gain of $3,000 and $3,000 of ordinary income.

b. Ordinary income of $6,000.

c. A § 1231 gain of $6,000.

d. A § 1231 gain of $6,000 and $3,000 of ordinary income.

Reference no: EM132684159

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