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Joaquin purchased a $145,000 crane for a construction business. The crane was sold for $115,000 after taking $81,200 of depreciation. Assume Joaquin is in the
Joaquin purchased a $145,000 crane for a construction business. The crane was sold for $115,000 after taking $81,200 of depreciation. Assume Joaquin is in the 35% tax rate bracket. Required: On what form would the gain or loss originally be reported? What is the amount of gain or loss on the sale? What amount of the gain or loss is subject to ordinary tax rates?
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