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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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