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Xavier purchased sound system equipment for his theater 6 years ago for $33,000. He expensed...

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Accounting

Xavier purchased sound system equipment for his theater 6 years ago for $33,000. He expensed a total of $26,000 in depreciation over the years. He sold the equipment for $10,000. Determine how the gain or loss will be taxed.

$10,000 ordinary income $7,000 ordinary income; $3,000 long-term capital gain $7,000 long-term capital gain $3,000 ordinary income

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