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Gabby purchased computer equipment (5 yr. property) to use in her business on 11/1/18 at a cost of $ 40,000. This was the only property
Gabby purchased computer equipment (5 yr. property) to use in her business on 11/1/18 at a cost of $ 40,000. This was the only property placed in service in 2018. On 3/1/20 Gabby sold this equipment for $44,000. Answer each part below as follows: Part A (3 points): How much depreciation (use MACRS 200DB method) will Gabby claim in the following years? 2018 $ 2019 $ Part B (3 points): What is Gabby's recognized gain on the sale of this asset in 2020? 2020 recognized gain-S Part C (2 points): If Gabby has a 37% ordinary income tax marginal rate and a 20% net capital gain tax marginal rate, How much additional tax will Gabby pay on the gain in part B? 1 2020 additional tax-$ Clearly label your answers (Part A, 2018, 2019, Part B, etc. etc.). Show your work if you want any partial credit consideration
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