On June 1,2010,Buffalo Corporation Purchased and Placed in Service 7-Year

question 79

Essay

On June 1,2010,Buffalo Corporation purchased and placed in service 7-year MACRS tangible property costing $100,000.On November 10,2013,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?

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Definitions:

Vascular Tissue

The complex tissue in plants that conducts water and nutrients through the plant body.

Cortex

The outer layer of various organs or structures, such as the brain's cerebral cortex, involved in high-level functions including consciousness, memory, and thought, or the kidney's cortex, involved in filtration and blood processing.

Tracheids

Water-conducting cells in the xylem of vascular plants that are elongated, with thickened cell walls and tapered ends, contributing to the support and transportation of water and minerals.

Vessel Elements

Shorter, wider plant cells than tracheids, found in the xylem, which efficiently transport water and nutrients vertically through the plant.