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In year 0, Melloney sold machinery used in her business for $50,000 to Mark. The machinery's original basis was 542,000 and it had accumulated depreciation

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In year 0, Melloney sold machinery used in her business for $50,000 to Mark. The machinery's original basis was 542,000 and it had accumulated depreciation of $18,000 at the time of the sale. Mark paid Melloney S10,000 at the time of the sale and signed a note providing for payments of $10,000 plus interest for each of the following four years. How much gross income from this sale will be recognized and in which year(s)? a. Years 1-3: $10,000 in cach year b. Years 1-5: $5,200 in cach year c. Year 1: S26,000; Years 2-4: 50 in each year d. Year 1: $18,000; Years 2-4: $2,000 in each year e Year 1: $18,000; Years 2-4: $8,000 in each year

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