Taxpayer purchased office equipment for $9,000. The equipment had been depreciated $5,000. It was sold for $7,500. What is the amount and nature of the gain/loss from the sale? a. $1,500 ordinary loss b. $1,500 capital loss c. $3,500 ordinary income d. $3,500 long term capital gain
Taxpayer purchased office equipment for $9,000. The equipment had been depreciated $5,000. It was sold for $7,500. What is the amount and nature of the gain/loss from the sale? a. $1,500 ordinary loss b. $1,500 capital loss c. $3,500 ordinary income d. $3,500 long term capital gain
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 27CE
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Transcribed Image Text:Taxpayer purchased office equipment for $9,000.
The equipment had been depreciated $5,000. It was
sold for $7,500. What is the amount and nature of
the gain/loss from the sale?
a. $1,500 ordinary loss
b. $1,500 capital loss
c. $3,500 ordinary income
d. $3,500 long term capital gain
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT