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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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On February 5, 2010, Able, Inc. sold equipment used in its

Customer Question

On February 5, 2010, Able, Inc. sold equipment used in its business for $10,000. Able purchased the equipment on May 30, 2006 for $12,000 and has properly claimed $8,000 of depreciation deductions for tax purposes. As a result of this sale, Able will report:



a. A long-term capital gain of $6,000.

b. A §1231 gain of $6,000.

c. Ordinary income of $6,000.

d. A §1231 loss of $2,000.
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

b. A §1231 gain of $6,000.