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:

Bromo Monochloride

Likely referring to a molecule consisting of bromine and chlorine atoms, although its correct formula and commonly used name might be different.

Electronegative Element

An electronegative element is an element that has a high tendency to attract electrons towards itself in a chemical bond.

NaOH

Sodium hydroxide, a strong base used in many industrial and chemical processes.

Oxygen

A chemical element with the symbol O and atomic number 8; it is a highly reactive nonmetal and an oxidizing agent that readily forms oxides with most elements as well as with other compounds.