Sophia sold a piece of equipment for $5,000 on December 15th of the current year. The equipment was purchased for $6,000, and Sophia had taken $3,000 of depreciation deductions on the equipment through the date of the sale. What is Sophia's gain or loss realized on the equipment? A. $1,000 gain B. $2,000 loss C. $2,000 gain D. $1,000 loss E. None of these
Sophia sold a piece of equipment for $5,000 on December 15th of the current year. The equipment was purchased for $6,000, and Sophia had taken $3,000 of depreciation deductions on the equipment through the date of the sale. What is Sophia's gain or loss realized on the equipment? A. $1,000 gain B. $2,000 loss C. $2,000 gain D. $1,000 loss E. None of these
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 7CE
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Please give me true answer this general accounting question
Transcribed Image Text:Sophia sold a piece of equipment for $5,000 on December 15th of
the current year. The equipment was purchased for $6,000, and
Sophia had taken $3,000 of depreciation deductions on the
equipment through the date of the sale. What is Sophia's gain or loss
realized on the equipment?
A. $1,000 gain
B. $2,000 loss
C. $2,000 gain
D. $1,000 loss
E. None of these
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