Mike owns a car repair shop called Precision Auto Services. During the past year, Mike sold his facility to purchase a larger garage with extra service bays. -Sales Proceeds from the Buyer = $180,000 -Sales Commission Paid to Broker = $8,000 -Original Cost of the Building = $140,000 -Accumulated Depreciation for Tax Purposes = $20,500 What is Mike's realized gain or loss on the sale?
Mike owns a car repair shop called Precision Auto Services. During the past year, Mike sold his facility to purchase a larger garage with extra service bays. -Sales Proceeds from the Buyer = $180,000 -Sales Commission Paid to Broker = $8,000 -Original Cost of the Building = $140,000 -Accumulated Depreciation for Tax Purposes = $20,500 What is Mike's realized gain or loss on the sale?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 52P
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Transcribed Image Text:Mike owns a car repair shop called Precision Auto Services. During the
past year, Mike sold his facility to purchase a larger garage with extra
service bays.
-Sales Proceeds from the Buyer = $180,000
-Sales Commission Paid to Broker = $8,000
-Original Cost of the Building = $140,000
-Accumulated Depreciation for Tax Purposes = $20,500
What is Mike's realized gain or loss on the sale?
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