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On June 1,2014,Buffalo Corporation Purchased and Placed in Service 7-Year

question 87

Essay

On June 1,2014,Buffalo Corporation purchased and placed in service 7-year MACRS tangible property costing $100,000.On November 10,2017,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:

License

A legal authorization that grants the licensee the right to use, operate, or engage in an activity that is otherwise illegal, prohibited, or regulated.

Copyrighted Work

A piece of intellectual property that has been legally registered to secure exclusive rights to its creator for reproduction and distribution.

Ten Years

A time period equal to a decade or 10 consecutive years.

Tangible Property

Physical assets that can be seen, touched, and measured, such as real estate, vehicles, machinery, and other material possessions.

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