A business taxpayer sells inventory for $40,000. The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been...

A business taxpayer sells inventory for $40,000. The adjusted basis of the property is $58,000 at the time of the sale and the inventory had been held more than one year. The taxpayer has: 1. Sold a long-term capital asset. 2. An ordinary loss. 3. No gain or loss. 4. None of the above. 5. Sold a short-term capital asset.

Question:A business taxpayer sells inventory for $40,000. The adjusted basis of the property is$58,000 at the time of the sale and the inventory had been held more than one year. Thetaxpayer...