CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $63,000 with an adjusted basis of $37,800 for $41,580. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $18,900 for $12,285.
What are the tax consequences of these tax transactions?
Lena has an ordinary gain of $fill in the blank 2 from the sale of the first equipment.
Lena has a section 1231 loss of $fill in the blank 4 from the sale of the second equipment.
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