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Sumner Sold Equipment That It Uses in Its Business for $30,000

question 41

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Sumner sold equipment that it uses in its business for $30,000. Sumner bought the equipment a few years ago for $80,000 and has claimed $40,000 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?


Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, leading to inflexibility and inefficiency.

Stingy

Reluctant to spend or give; showing a lack of generosity.

Avoidant Personality Disorder

A mental health condition characterized by a long-standing pattern of extreme sensitivity to rejection, social inhibition, and feelings of inadequacy.

Dysfunctional Beliefs

Negative and incorrect beliefs that are rigid, extreme, and not based on reality, often contributing to psychological distress.

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