1. On July 3, 2022, Bill sold office equipment (5 year property) that he used in his business for $18,000. He purchased the equipment in June of 2018 for $20,000 and he took MACRS depreciation on the equipment in 2018, 2020and 2021. Based on the information given, please answer the following

• What was the amount of depreciation taken from 2019 to 2021?

• What is the book value of the asset on July 3, 2022 (day of the sale)?

• What is the gain or loss on the sale of the asset?

• What is the holding period and type of gain?

Please show all work and explanations. Thank You.