Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Two years ago John purchased an icecream machine to used for his buisness for 7,000. He has taken deprciation deductionsof 3,000 over this period, and
Two years ago John purchased an icecream machine to used for his buisness for 7,000. He has taken deprciation deductionsof 3,000 over this period, and sold the machine for 5,000$ what will john includde on his tax return as a result of the sale?
A.1,000 taxed at long-term capital gain rates
B.1,000 taxed at ordinary income rates
C.2,000 long-term capital loss
D.2,000 ordinary loss
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started