Maria Acquired a Personal Computer to Use 100% in Her

question 40

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:
$$\begin{array} { l c c c } &\underline { \text { Sales Price } }& \begin{array} { r } \text { Amount of } \\\underline { \text { Gain(Loss } )}\end{array} & \underline { \text { Character } ( 1231,1245,1250 )} \\\text { a } & \$ 2,400 &\underline { \quad\quad\quad\quad\quad } &\underline { \quad\quad\quad\quad\quad } \\\text { b. } & \$ 6,350 &\underline { \quad\quad\quad\quad\quad } &\underline { \quad\quad\quad\quad\quad } \\\text { c. } & \$ 4,600 &\underline { \quad\quad\quad\quad\quad } &\underline { \quad\quad\quad\quad\quad } \\\end{array}$$

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.

Budget Proportion

Budget proportion refers to the allocation or division of an individual's or entity's budget among various expenses or categories.

Price Elasticity

An indicator of how sensitive the demand or supply for a product or service is to variations in its cost.

Time Available

The amount of time one has free for activities beyond commitments like work or sleep; may refer to leisure or additional productive time.