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Alpha sold machinery that it used in its business to Beta, a related entity, for $40,050. Beta used the machinery in its business. Alpha

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Alpha sold machinery that it used in its business to Beta, a related entity, for $40,050. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,950 and has claimed $30,050 of depreciation expense. What is the amount and character of Alpha's gain? Multiple Choice $20,150 ordinary income under 1239 $10,000 ordinary gain and $10,150 $1231 gain $20,150 $1231 gain $20,150 capital gain None of the choices are correct

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