The original cost of machinery used in a business is							$ 650,000
Depreciation is calculated using MACRS. The machine is 7 year prop and the mid year convention applies.
1. The machinery is sold at end of year 3 when accumulated depreciation is
2. Adjusted tax basis at the time of sale
The machinery sold for for $500,000 cash and land worth $200,000.
3. Amount realized
4. Adjusted basis
5. Realized gain
6. How much of the gain, if any, is ordinary?
7. How much of the gain, if any, is capital