Maria Acquired a Personal Computer to Use 100% in Her

question 43

Essay

Maria acquired a personal computer to use 100% in her business for $6,000.She took MACRS deductions of $2,880 before selling it in current year.Determine the amount and character of the gain (loss)recognized on the sale of the computer,assuming a sales price that differs in each of the three independent situations:

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Definitions:

Consolidated Long-term Liabilities

The total amount of long-term debts that a company reports on its balance sheet, including all of its subsidiaries.

Voting Shares

Voting shares are shares of stock in a company that grant the shareholder the right to vote on corporate matters, typically in proportion to the number of shares held.

Fair Value

The approximate financial worth of an asset or liability, determined by existing prices in a transparent and contestable market.