Reference no: EM13937232
Locke sold machinery used in his business for $50,000. He purchased the equipment three years ago for $55,000 and deducted $22,800 MACRS depreciation through date of sale. Compute and characterize Locke's gain on sale.
A) $17,800 Section 1231 gain
B) $22,800 ordinary gain and $5,000 Section 1231 loss
C) $17,800 ordinary gain
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Compute and characterize lockes gain on sale
: Locke sold machinery used in his business for $50,000. He purchased the equipment three years ago for $55,000 and deducted $22,800 MACRS depreciation through date of sale. Compute and characterize Locke's gain on sale.
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