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Small Company purchased equipment in 2005 for $100,000. Small Company did not claim any depreciation deductions on the equipment. In 2008, Small Company sold the
Small Company purchased equipment in 2005 for $100,000. Small Company did not claim any depreciation deductions on the equipment. In 2008, Small Company sold the equipment for $85,000. In March 2014, Small Company purchased new equipment for $200,000. Small Company sold the equipment in April 2015 for $220,000. How much LTCG does Small Company report in 2015?
| a. | $0 | |
| b. | $20,000 | |
| c. | $220,000 | |
| d. | $5,000 |
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