40. During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are A) LTCG of $30,000. B) Sec. 1231 gain of $30,000 potentially receiving LTCG treatment after application of the Sec. 1231 netting process. C) Sec. 1245 ordinary income $30,000. D) Sec. 1250 ordinary income of $30,000.
40. During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are A) LTCG of $30,000. B) Sec. 1231 gain of $30,000 potentially receiving LTCG treatment after application of the Sec. 1231 netting process. C) Sec. 1245 ordinary income $30,000. D) Sec. 1250 ordinary income of $30,000.
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 21CE
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Transcribed Image Text:40. During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000
when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The
results of the sale are
A) LTCG of $30,000.
B) Sec. 1231 gain of $30,000 potentially receiving LTCG treatment after application of the Sec.
1231 netting process.
C) Sec. 1245 ordinary income $30,000.
D) Sec. 1250 ordinary income of $30,000.
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