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Andrew Wilson sells a piece of photography equipment that he used in his trade or business to his brothers Luke and Owen, who will also
Andrew Wilson sells a piece of photography equipment that he used in his trade or business to his brothers Luke and Owen, who will also use it in a trade or business. Andrew owned the equipment for three years, purchased it for $7,000, and has recognized $4,500 in depreciation deductions. He sold the equipment for $9,000. What is the amount and character of gain or loss that Andrew will recognize on the sale?
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