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On June 1,2011,Buffalo Corporation Purchased and Placed in Service 7-Year

question 24

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On June 1,2011,Buffalo Corporation purchased and placed in service 7-year MACRS tangible property costing $100,000.On November 10,2014,Buffalo sold the property for $102,000 after having taken MACRS $47,525 in depreciation deductions.What is the amount and character of Buffalo's gain?


Definitions:

Unrelated Businesses

Companies or divisions that operate in distinctly different industries or markets without significant overlap in products, services, or customer bases.

Virtual Organization

A company that primarily operates through electronic communication and does not have a physical central location, relying on the Internet and other technological means to function.

Efficient Bureaucracy

A system of organization that is effectively structured with clear rules and procedures to ensure maximum productivity and efficiency.

Low-Cost Leadership

A business strategy focused on becoming the lowest cost producer in an industry for a certain level of product quality.

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