Network Corporation Purchased $200,000 of Five-Year Equipment on March 24,2014

question 35

Essay

Network Corporation purchased $200,000 of five-year equipment on March 24,2014.They elected to expense $60,000 of the cost under Sec.179 in effect that year.After depreciating the equipment $28,000 in 2014 and $22,400 in 2015,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?

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Definitions:

Perceptual Adaptation

The ability of the body to adjust to an environment by filtering out distractions and focusing on particular stimuli.

Radio Ad

A form of advertising that uses the radio as a medium to promote products, services, or events to listeners.

Mental Respond

The mental reaction or reply to stimuli, often encompassing thoughts, emotions, and cognitive processing.

Retinal Disparity

The slight difference in the visual images that each eye perceives because of the different angles from which each eye views the world.