paul sells machinery that is used as a business asset for 125,000 paul originally purchased machinery...
paul sells machinery that is used as a business asset for 125,000 paul originally purchased machinery for 200,000 and deducted 120,000 in depreciation expenses on the equipment how much gain will paul recognize from sale of equipment and what is the character of that gain??
Homework Answers
Carrying value = Cost - Accumulated depreciation
= $200,000 - $120,000
= $80,000
Gain = Sale price - Carrying value
= $125,000 - $80,000
= $45,000
Section 1245 ordinary gain = $45,000
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