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On June 1, 2015, Buffalo Corporation Purchased and Placed in Service

question 1225

Essay

On June 1, 2015, Buffalo Corporation purchased and placed in service 7- year MACRS tangible property costing
$100,000. On November 10, 2018, 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:

Services Trade Balance

The difference in value between a country's exported and imported services, indicating whether a country is a net exporter or importer of services.

Trade Balance

The difference between a country's exports and imports of goods and services.

Colonial Power

A country that establishes control over foreign territories to exploit them economically, politically, and culturally.

Manufactured Products

Goods that have been processed or transformed from raw materials into finished goods ready for sale.

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