ACCT 401 DB4

There will be 4 Group Discussion Board Forums throughout the course.  Groups will be assigned alphabetically based on last name. The purpose  of Group Discussion Board Forums is to generate interaction among  students in regard to relevant current course topics. You are required  to post 1 thread of at least 500 words and 2 replies of at least 250  words each in response to 2 classmates’ threads. For each thread, you  must support your assertions with at least 2 citations other than the  textbook. The Bible must be one of those sources. Everything must be in  current APA format, and citations for the replies are not required but  encouraged.
Question 5: Mathias has been the sole proprietor of a clothing store for many years. He intends to retire after holding a “liquidation sale”. He wants to avoid ordinary income from the sale of the business inventory, so he shuts down the store for one month and then begins the liquidation sale. Mathias tells you (his tax return preparer) to report the liquidation sale proceeds as capital gain because he was no longer using those assets in a business at the time of the sale, but was holding them for investment. Evaluate the propriety of Mathias’s plan. Justify your answer. 

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