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The value of depreciation recapture is $

The value of depreciation recapture is $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You use a car in a majority of your sole-proprietorship engineering consulting business. This business asset cost you $80,000 new and has been depreciated according to MACRS over a 5-year period. At the end of year 4, you bought a replacement vehicle and traded for a net positive $19,500 on the old car. Determine if depreciation recapture or a capital loss is present and, if so, how much. (Click to select) v , there (Click to select) ♥ depreciation recapture. The value of depreciation recapture is $
Transcribed Image Text:You use a car in a majority of your sole-proprietorship engineering consulting business. This business asset cost you $80,000 new and has been depreciated according to MACRS over a 5-year period. At the end of year 4, you bought a replacement vehicle and traded for a net positive $19,500 on the old car. Determine if depreciation recapture or a capital loss is present and, if so, how much. (Click to select) v , there (Click to select) ♥ depreciation recapture. The value of depreciation recapture is $
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