Question
Calvin sold a backhoe used in his landscaping business for $5,000. He owned the backhoe for 3 years. The original purchase price was $7,000. Calvin
Calvin sold a backhoe used in his landscaping business for $5,000. He owned the backhoe for 3 years. The original purchase price was $7,000. Calvin had taken $4,000 in depreciation expense. Determine how the gain or loss will be taxed.
| a. | $2,000 long-term capital gain | |
| b. | $2,000 ordinary income | |
| c. | $4,000 ordinary income | |
| d. | $5,000 long-term capital gain |
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Precalculus
Authors: Michael Sullivan
9th edition
321716835, 321716833, 978-0321716835
