Taxpayer has a plant where she acquired a machine for $17,000. Over time, depreciation of $9,000 was claimed. In the current year, taxpayer sells the asset for $22,000. What is the amount and nature of the gain/loss from the sale? a. $9,000 of ordinary income, $5,000 long term capital gain b. $5,000 of long-term capital gain, $5,000 of ordinary income c. $11,000 ordinary income d. $11,000 long term capital gain
Taxpayer has a plant where she acquired a machine for $17,000. Over time, depreciation of $9,000 was claimed. In the current year, taxpayer sells the asset for $22,000. What is the amount and nature of the gain/loss from the sale? a. $9,000 of ordinary income, $5,000 long term capital gain b. $5,000 of long-term capital gain, $5,000 of ordinary income c. $11,000 ordinary income d. $11,000 long term capital gain
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 3DQ
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What is the amount and nature of the gain from the sale
Transcribed Image Text:Taxpayer has a plant where she acquired a machine for $17,000.
Over time, depreciation of $9,000 was claimed. In the current
year, taxpayer sells the asset for $22,000. What is the amount
and nature of the gain/loss from the sale?
a. $9,000 of ordinary income, $5,000 long term capital gain
b. $5,000 of long-term capital gain, $5,000 of ordinary income
c. $11,000 ordinary income
d. $11,000 long term capital gain
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