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Terry owns a nondepreciable capital asset held for investment. The asset was purchased for $400,000 six years earlier and is now subject to a $15,000
Terry owns a nondepreciable capital asset held for investment. The asset was purchased for $400,000 six years earlier and is now subject to a $15,000 liability. During the current year, Terry transfers the asset to Tate in exchange for $100,000 cash and a new automobile with a $15,000 FMV to be used by Terry for personal use; Tate assumes the $15,000 liability. Requirement Determine the amount of Terry's LTCG or LTCL. (Use parentheses or a minus sign to enter a loss.) Terry will realize a long-term capital gain or loss of
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