Question
Billy purchased business equipment for $100,000 in and has taken $40,000 of regular MACRS depreciation. Billy sells the equipment in 2022 for $80,000. What is
Billy purchased business equipment for $100,000 in and has taken $40,000 of regular MACRS depreciation. Billy sells the equipment in 2022 for $80,000.
What is the amount and character of Billy's gain or loss?
a. Sec. 1231 gain $20,000
b. Sec. 1231 loss $20,000
c. Sec. 1245 gain $20,000
d. Sec. 1245 gain $10,000 & Sec. 1231 gain $10,000
e. Sec. 1245 gain $20,000 & Sec. 1231 gain $20,000
Billy purchased business equipment for $100,000 in and has taken $40,000 of regular MACRS depreciation. Billy sells the equipment in 2022 for $80,000.
What is the amount and character of Billy's gain or loss?
a. Sec. 1231 gain $20,000
b. Sec. 1231 loss $20,000
c. Sec. 1245 gain $20,000
d. Sec. 1245 gain $10,000 & Sec. 1231 gain $10,000
e. Sec. 1245 gain $20,000 & Sec. 1231 gain $20,000
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Workbook/Study Guide To Accompany Managerial Accounting
Authors: Ray H Garrison, Eric Noreen, Peter C. Brewer
11th Edition
0072986131, 978-0072986136
