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Zeke, a wealthy farmer, constructed a barn in March 1986 for $10,000. He claimed $6,500 of accelerated depreciation while straight line depreciation would have been
Zeke, a wealthy farmer, constructed a barn
in March 1986 for $10,000. He claimed $6,500
of accelerated depreciation while straight line
depreciation would have been only $5,600.
He sells the barn for $8,900. If he had no other
Section 1231 transactions, what gain would be
recognized from this sale? Include both the
amount and the nature of the gain.
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