Accumulated depreciation=(33.33%+44.45%)*20000=15556
Book value at the end of second year=20000-15556=4444
Selling price =12000
Adjusted basis =4444
Gain realized =12000-4444=7556
Depreciation recapture (ordinary income)=MIN(7556,15556)=7556
Capital gain=7556-7556=0
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