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LaSalle Inc. purchased a transmission belt equipment at a cost of $5630000 in 20X3. LaSalle Inc. took the following depreciation for tax deduction from 20X3
LaSalle Inc. purchased a transmission belt equipment at a cost of $5630000 in 20X3. LaSalle Inc. took the following depreciation for tax deduction from 20X3 to 20X6. 20X3: $804527 20X4: $1378787 20X5: $984687 20X6: $703187 In 20X7, LaSalle Inc. sold the equipment for $1870000, after taking another depreciation deduction of $251661 in 20X7. This was the only equipment sales transaction in the past five years. What is the taxable gain/loss from disposal of the equipment this year and is the type of gain/loss amount ordinary or capital? Question 32Answer a. 362849 ordinary income b. 111188 capital gain c. 362849 capital gain d. 111188 ordinary income
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