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Thieves stole computer equipment owned by Eaton Company and used for three years in its consulting business.Eaton's adjusted basis in equipment was $23,200,and its replacement value was $50,000.Eaton's insurance company paid only $15,000 on Eaton's claim for the theft loss.As a result,Eaton recognizes:


A) $35,000 ordinary loss
B) $8,200 Section 1231 loss
C) $8,200 ordinary loss
D) None of the above

E) All of the above
F) A) and D)

Correct Answer

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Because land is nondepreciable,it is always a capital asset.

A) True
B) False

Correct Answer

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