6
answers
1
watching
108
views
6 Jan 2023
United States tax law
BigDots Corp. purchased a machine for 51,000,000 in year 4 which is a high proftable year. In order to maximize the depreciation expense, BigDots claimed the maximum amount of $179 expense. As a result of heavy depreciation in Year 4 and 5, the machine had a adjusted basis of $200.000 in Year 6. Had only MACRS depreciation been taken on the property, its adjusted basis at the time of sale would have been $800.000. Please determine how much of the realized gain should be reported asordinary gain if the machine was sold for $930,000 in year 6.
United States tax law
BigDots Corp. purchased a machine for 51,000,000 in year 4 which is a high proftable year. In order to maximize the depreciation expense, BigDots claimed the maximum amount of $179 expense. As a result of heavy depreciation in Year 4 and 5, the machine had a adjusted basis of $200.000 in Year 6. Had only MACRS depreciation been taken on the property, its adjusted basis at the time of sale would have been $800.000. Please determine how much of the realized gain should be reported asordinary gain if the machine was sold for $930,000 in year 6.
mohitmahajan714Lv10
1 Mar 2023
7 Jan 2023
Already have an account? Log in
6 Jan 2023
Already have an account? Log in
