In the Current Year, Raven Sold Machinery with a Fair

question 79

Essay

In the current year, Raven sold machinery with a fair market value of $200,000. The machinery's original basis was $190,000 and Raven's accumulated depreciation on the machinery was $40,000, so its adjusted basis to Raven was $150,000. Raven received $50,000 in the current year and a note paying Raven $75,000 a year for two years beginning next year. What is the amount and character of the gain that Raven will recognize in the current year?

---

Definitions:

Managed Care

Health care system in which there is administrative control over primary health care services. Redundant facilities and services are eliminated, and costs are reduced. Preventive care and health education are emphasized.

Prevention

The act of stopping something from happening or arising, often referring to measures taken to prevent diseases or accidents.

Illness Care

The management and treatment of a patient suffering from disease or injury.

Minimum Data Set

A standardized set of clinical and functional status elements that forms the foundation of the comprehensive assessment for all residents of long-term care facilities or settings.