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In 2022 , Shelly sells equipment used in her business for $3,000. The equipment had an original cost of $10,000 and accumulated depreciation at the

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In 2022 , Shelly sells equipment used in her business for $3,000. The equipment had an original cost of $10,000 and accumulated depreciation at the time of the sale was $6,000. The equipment was a section 1231 asset and was the only section 1231 asset sold during the year. What amounts will be reported on Shelly's 2022 income tax return related to this sale. Shelly will report an ordinary loss deduction of $1,000. Shelly will report section 1245 depreciation recapture of $1,000. Shelly will report a long-term capital loss of $1,000. Shelly will report section 1245 depreciation recapture of $6,000 and a short-term capital loss of $1,000

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