Network Corporation Purchased $200,000 of Five-Year Equipment on March 24,2015

question 53

Essay

Network Corporation purchased $200,000 of five-year equipment on March 24,2015.They elected to expense $60,000 of the cost under Sec.179 in effect that year.After depreciating the equipment $28,000 in 2015 and $22,400 in 2016,the equipment was sold for $190,000.
a.What is the amount of the realized gain (or loss)on the sale?
b.How is the gain or loss taxed?

---

Definitions:

Coupon

The interest payment made to bondholders, typically expressed as an annual percentage of the bond's face value.

Coupon Bond

A type of bond that offers periodic interest payments to the holder through fixed "coupons" and the return of the principal at maturity.

Yield To Maturity

The total return expected on a bond if held until its maturity date, including both interest payments and capital gains.

Interest Annually

The amount of interest earned or paid over a one-year period.