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50 3 pts Trek sold machinery, which it used in its business, to BMC, a related entity, for $40,000. BMC used the machinery in its
50 3 pts Trek sold machinery, which it used in its business, to BMC, a related entity, for $40,000. BMC used the machinery in its business. Trek bought the machinery a few years ago for $50,000 and has claimed $30,000 of depreciation expense. What is the amount and character of Trek's gain? $10,000 ordinary gain and $10,000 $1231 gain. $20,000 ordinary gain. $20,000 ordinary income under $1239. $20,000 capital gain. None of the choices are correct
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