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Doughbuddy, Inc. bought a buffer for $350,000 and was depreciating it based on a life of eight years using the straight-line method. They assumed they
Doughbuddy, Inc. bought a buffer for $350,000 and was depreciating it based on a life of eight years using the straight-line method. They assumed they would get a salvage value of $50,000. After three years, the buffer was sold for $250,000. From a tax perspective, state below on Blackboard whether this sale represents a recaptured depreciation, loss, or capital gain. Also state below how much, to the closest dollar, is the recaptured depreciation, loss, or capital gain.
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