17. Elizabeth Ellis sells a business asset for $10,000. Assume that Elizabeth has owned the asset for several years; that the original cost was $6,000; and that Elizabeth has claimed no depreciation deduction during the period of ownership and use. Assume that Elizabeth would have deducted $2,000 if she had claimed depreciation. Assume also that Elizabeth will not file amended returns to correct any prior year returns. How should Elizabeth report the sale? Ignore any potential depreciation recapture. Gain of $6,000 and expense of sale deduction for AGI of $2,000 Gain of $6,000 and a deduction from AGI of $2,000 Gain of $4,000 Gain of $4,000 and itemized deduction of $2,000 D. None of the above

17. Elizabeth Ellis sells a business asset for $10,000. Assume that Elizabeth has owned the asset for several years; that the original cost was $6,000; and that Elizabeth has claimed no depreciation deduction during the period of ownership and use. Assume that Elizabeth would have deducted $2,000 if she had claimed depreciation. Assume also that Elizabeth will not file amended returns to correct any prior year returns. How should Elizabeth report the sale? Ignore any potential depreciation recapture. Gain of $6,000 and expense of sale deduction for AGI of $2,000 Gain of $6,000 and a deduction from AGI of $2,000 Gain of $4,000 Gain of $4,000 and itemized deduction of $2,000 D. None of the above

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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17. Elizabeth Ellis sells a business asset for $10,000. Assume that Elizabeth has owned the asset
for several years; that the original cost was $6,000; and that Elizabeth has claimed no
depreciation deduction during the period of ownership and use. Assume that Elizabeth
would have deducted $2,000 if she had claimed depreciation. Assume also that Elizabeth
will not file amended returns to correct any prior year returns. How should Elizabeth
report the sale? Ignore any potential depreciation recapture.
Gain of $6,000 and expense of sale deduction for AGI of $2,000
Gain of $6,000 and a deduction from AGI of $2,000
Gain of $4,000
Gain of $4,000 and itemized deduction of $2,000
A
B
D
None of the above

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