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Copper Corporation sold machinery for $ 47,000 on December 31, 2020. The machinery had been...

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Accounting

Copper Corporation sold machinery for $ 47,000 on December 31, 2020. The machinery had been purchased on January 2, 2017, for $ 60,000 and had an adjusted basis of $ 41,000 at the date of the sale. For 2020, what should Copper report? MUST EXPLAIN SHOW WORK!

a. Ordinary Income of$ 6,000.

b. A Code Section 1231 gain of$ 3,000 and $ 3,000 of ordinary income.

c. A Code Section 1231 gain of$ 6,000.

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

e. None of these.

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