Network Corporation Purchased $200,000 of Five-Year Equipment on March 24,2012

question 82

Essay

Network Corporation purchased $200,000 of five-year equipment on March 24,2012.They elected to expense $60,000 of the cost under Sec.179 in effect that year.After depreciating the equipment $28,000 in 2012 and $22,400 in 2013,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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Definitions:

Webpages

Documents on the World Wide Web, accessible through browsers and consisting of HTML code, media, and other elements.

Graphics

Visual components such as images, charts, diagrams, or animations used in digital media to convey information, ideas, or enhance aesthetic appeal.

E-commerce Website

An online platform that allows businesses to sell goods and services over the internet.

Secure Connection

A means of communication over the internet that is encrypted and protected from interception.