Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In 2019, Pamela purchased a commercial sewing machine for use in her childrens clothing business for $20,000. In 2021, she sold the machine for $15,000.
In 2019, Pamela purchased a commercial sewing machine for use in her childrens clothing business for $20,000. In 2021, she sold the machine for $15,000. Between the date of purchase and date of sale, Pamela depreciated the sewing machine by $6,000. What is the amount and character of Pamelas gain?
A. $1,000 Section 1231 gain
B. $1,000 Section 1245 gain
C. $6,000 Section 1231 gain
D. $6,000 Section 1245 gain
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