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Network Corporation Purchased $200,000 of Five-Year Equipment on March 24,2011

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Network Corporation purchased $200,000 of five-year equipment on March 24,2011.They elected to expense $60,000 of the cost under Sec.179.After depreciating the equipment $28,000 in 2011 and $22,400 in 2012,the equipment was sold for $190,000.
a.What is the amount of the realized gain (or loss)on the sale?
b.How is the gain or loss taxed?


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