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Test - Intermediate Depreciation (2016) Section 4 Question 11 of 20. Jason purchased a home with a detached garage. In January 2010, Jason converted the
Test - Intermediate Depreciation (2016) Section 4 Question 11 of 20. Jason purchased a home with a detached garage. In January 2010, Jason converted the garage for his business, building bird houses. He determined that the value of the garage was $12,000, excluding the land. He sold the garage in December 2015 to a neighbor for $11,000. He is surprised that, even though he sold it at a loss, his return would show a gain. What is the best explanation for why Jason had a gain? O There is a mistake on Jason's retum. O Jason had a gain because the sales price was more than the adjusted basis. O Jason had a gain because he owned the property a long time. O Jason had a gain because this property was converted from personal use. Mark for follow up Back Save / Returm Later Summary Next
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