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If an asset is sold for less than its purchase price but more than its depreciation book value: If an asset is sold for less
If an asset is sold for less than its purchase price but more than its depreciation book value: If an asset is sold for less than its purchase price but more than its depreciation book value: there is a taxable event with a capital loss created the asset sale creates no taxable event there is a tax computed using the ordinary income rate there is a loss to report for tax purposes
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