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

question 2207

Essay

Network Corporation purchased $200,000 of five- year equipment on March 24, 2016. They elected to expense
$60,000 of the cost under Sec. 179 in effect that year. After depreciating the equipment $28,000 in 2017 and $22,40 2018, 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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