Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kelko sells a plece of equipment used in her business for $14,853 on August 10, 2016. The equipment was purchased on January 4, 2015 at

image text in transcribed

Kelko sells a plece of equipment used in her business for $14,853 on August 10, 2016. The equipment was purchased on January 4, 2015 at a cost of $12,849. Kelko has taken $3,855 of depreciation on the equipment. What is the amount and classification of the gain on the sale by Keiko? O . 0 $5,859 Section 1231 gain O $3,855 ordinary income under Section 1245 and $2,004 Section 1231 gain O $3,855 Section 1231 gain and $2.004 ordinary income under Section 1245. $5,859 ordinary income under Section 1245

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions

Question

Differentiate policy advocacy and policy analysis

Answered: 1 week ago

Question

Write short notes on Interviews.

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago