Nigel elects to treat the cutting of timber as a sale or


Question - Nigel elects to treat the cutting of timber as a sale or exchange under § 1231. Nigel purchased the land for $120,000 and the timber for $210,000 several years ago. On the first day of 2012, the timber was appraised at $230,000, and in September 2012, it was cut and sold for $238,750. What is Nigel's Section 1231 gain from this transaction? Explain.

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Accounting Basics: Nigel elects to treat the cutting of timber as a sale or
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