A Duplex Was Purchased for $120,000, and Depreciation of $3,300

question 1

Essay

A duplex was purchased for $120,000, and depreciation of $3,300 has been taken for the last seven years. The net proceeds from the sale of the property were $135,000.
A) Assuming the property qualifies for capital gains treatment at a 15% rate, what is the tax owed?
B) What are the net funds from the sale?

• A) Assuming the property qualifies for capital gains treatment at a 15% rate, what is the tax owed?
• B) What are the net funds from the sale?

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Definitions:

Parallel Connection

An arrangement in electrical circuits where components are connected across common junction points, allowing each component to operate independently of the others.

Frequency Source

An electronic device or system that generates a repetitive signal of a fixed, specified frequency.

Anti-Federalist

Individuals opposed to the ratification of the U.S. Constitution in the late 18th century, fearing it concentrated too much power at the federal level and lacked sufficient protection for individual rights.

Liberty

A fundamental principle referring to the freedom of individuals to live their life without restrictive laws, interference from others, or governmental control, except under the law.