Kimberly sold equipment that she uses in her business for $50,000. Kimberly bought the equipment two years ago for $60,000 and has claimed $30,000 of depreciation expense. What is the amount and character of Kimberly's gain or loss? Multiple Cholce $30,000 section 1231 gain. $20,000 ordinary gain. $5,000 ordinary gain, and $15,000 section 1231 gain.
Kimberly sold equipment that she uses in her business for $50,000. Kimberly bought the equipment two years ago for $60,000 and has claimed $30,000 of depreciation expense. What is the amount and character of Kimberly's gain or loss? Multiple Cholce $30,000 section 1231 gain. $20,000 ordinary gain. $5,000 ordinary gain, and $15,000 section 1231 gain.
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 21MCQ: Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before...
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![MC Qu. 12 Kimberly sold equipment that she uses...
Kimberly sold equipment that she uses in her business for $50,000. Kimberly bought the equipment two years ago for $60,000 and has claimed
$30,000 of depreciation expense. What is the amount and character of Kimberly's gain or loss?
Multiple Cholce
$30.000 section 1231 gain.
es
$20,000 ordinary gain.
$5,000 ordinary gain, and $15,000 section 1231 gain.
$20,000 capital gain.
None of the choices are correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc38fc728-392a-466a-8c73-1a5cbdafe031%2F8d2692a1-a9be-492d-ac1c-790de9136fb1%2Fhcwtbyp_processed.png&w=3840&q=75)
Transcribed Image Text:MC Qu. 12 Kimberly sold equipment that she uses...
Kimberly sold equipment that she uses in her business for $50,000. Kimberly bought the equipment two years ago for $60,000 and has claimed
$30,000 of depreciation expense. What is the amount and character of Kimberly's gain or loss?
Multiple Cholce
$30.000 section 1231 gain.
es
$20,000 ordinary gain.
$5,000 ordinary gain, and $15,000 section 1231 gain.
$20,000 capital gain.
None of the choices are correct.
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