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Alpha sold machinery, which it used in its business, to Beta, a related entity, for $39,000. Beta used the machinery in its business. Alpha bought
Alpha sold machinery, which it used in its business, to Beta, a related entity, for $39,000. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $50,100 and has claimed $29,900 of depreciation expense. what is the amount and character of Alpha gain? $19,700 ordinary income under 1239 $10,000 ordinary gain and $9,700 1231 gain $9,700 ordinary gain $19,700 capital gain none of the choices are correct
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