Cooper Corporation sold machinery for $47,000 on December 31, 2023. The machinery had been purchased on January 2, 2020, for $60,000 and had an adjusted basis of $41,000 at the date of the sale. For 2023, what should Cooper report?
Question 25 options:
A section 1231 gain of $3,000 and $3,000 of ordinary income.
Ordinary income of $6,000.
A section 1231 gain of $6,000 and $3,000 of ordinary income.
A section 1231 gain of $6,000.