Charmine, a Single Taxpayer with No Dependents, Has Already Incurred

question 81

Essay

Charmine, a single taxpayer with no dependents, has already incurred a $10,000 § 1231 gain in 2012 and has no § 1231 lookback losses. The taxpayer purchased a business machine for $100,000 five years ago, $70,000 of depreciation has been taken on it, and the machine is now worth $90,000. How will the net § 1231 gain or loss be affected if the taxpayer trades in the business machine for a like-kind business machine and pays an additional $12,000 in cash to obtain the replacement machine? If Charmine already has $322,000 of taxable income which does not include a $10,000 §1231 gain or any capital gains or losses, what is her taxable income?

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Definitions:

Gradual Behavior Change

A slow and systematic modification of behavior patterns over time.

Multiple Baseline Design

An experimental design that introduces the intervention at different times across settings, behaviors, or subjects to demonstrate control over the variables being examined.

Changing Criterion Design

An experimental design in which the effect of the intervention is demonstrated by how well the behavior matches a criterion that is systematically altered.

Reversal Design

A research design often used in behavior analysis, where a behavior is measured before and after an intervention, and then the intervention is withdrawn to see if behavior returns to baseline levels.