Network Corporation Purchased $200,000 of Five-Year Equipment on March 24,2012

question 82

Essay

Network Corporation purchased $200,000 of five-year equipment on March 24,2012.They elected to expense $60,000 of the cost under Sec.179 in effect that year.After depreciating the equipment $28,000 in 2012 and $22,400 in 2013,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:

Qualitative Variables

Variables that express attributes or categories, such as gender, nationality, or brand preference, and cannot be quantitatively measured.

Degrees of Freedom

The tally of distinct numbers or magnitudes assignable to a statistical distribution.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to determine the distribution's parameter.

Chi-Squared Test Statistic

A value used in chi-squared tests to evaluate how likely observed frequencies of events are to occur under a specific hypothetical distribution.