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PLEASE HELP Eleven years ago, Lynn Inc. purchased a warehouse for $315,000. This year, the corporation sold the warehouse to Firm D for $80,000 cash
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Eleven years ago, Lynn Inc. purchased a warehouse for $315,000. This year, the corporation sold the warehouse to Firm D for $80,000 cash and D's assumption of a $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-line depreciation on the warehouse a. Compute Lynn's gain recognized on sale of the warehouse. b. How much of this recognized gain is treated as capital gain and how much is ordinary? c. How would your answers change if Lynn is a noncorporate business? Complete this question by entering your answers in the tabs below. Required A Required B Required C How much of this recognized gain is treated as capital gain and how much is ordinary? (Leave no cell blank. Enter "O" for cells that do not have an amount.) Capital gain Ordinary gainStep by Step Solution
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