Question
Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value. Jay's cost and
Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value. Jay's cost and adjusted basis for the assets are shown below.
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Jay has been unable to establish the fair market values of the three assets. All he can determine is that combined they were worth $300,000 to the buyer in this arm's length transaction.
c. If Jay allocates the $300,000 selling price to each asset based on its relative original cost, determine the gain or loss. In your computation, round any division to 6 decimal places. Then, round your final answer to the nearest whole dollar.
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