Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dentex Company purchased an x-ray machine on November 13, 2015. The original basis is $30,000. Dentex takes tax depreciation of $18,000 on the machine. Dentex
Dentex Company purchased an x-ray machine on November 13, 2015. The original basis is $30,000. Dentex takes tax depreciation of $18,000 on the machine. Dentex sells the x-ray on January 3, 2020, for $50,000. What are the tax effects of this transaction for Dentex? Group of answer choices Dentex has a 1231 gain of $38,000. Dentex has a 1231 loss of ($14,000). Dentex has a 1231 gain of $20,000; 1245 gain of $18,000. Dentex has a 1231 gain of $18,000; and a 1245 gain of $20,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started