On March 17, a calendar-year taxpayer sells a machine used in its business for $9,000....
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Accounting
On March 17, a calendar-year taxpayer sells a machine used in its business for $9,000. The machine was purchased sixteen months earlier for $8,500 and depreciation deductions of $1,800 have been taken. What is the amount and type of gain
recognized on the sale?
a. $2,300 Section 1231 gain
b. $2,300 ordinary income
c. $1,800 Section 1245 recapture; $500 Section 1231 gain
d. $1,800 Section 1250 recapture; $500 Section 1231 gain
e. None of the above
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