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Nick sells an apartment building to Lauren in 2 0 2 3 . Lauren will pay $ 1 , 5 0 0 , 0 0

 Nick sells an apartment building to Lauren in 2023. Lauren will pay $1,500,000 in 2023,  $9,500,000 in 2024, and $2,500,000 in 2025. Nick originally paid $10,400,000 for the building and took $3,800,000 of straightline depreciation.
 

(a) How much gain from the sale of the building must Nick recognize in 2023(the year of

sale)?

(b) How much gain from the sale of the building must Nick recognize in 2024?


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