Based on the preceding information, how much of the gain on sale of the equipment recorded by Mortar for 20X8 will be recognized in 20X9? Group of answer choices

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 24P
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Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 20X7. On December 31, 20X8, Mortar received $370,000 from Granite for equipment Mortar had purchased on January 1, 20X5, for $400,000 and had been depreciating it over 10 Years and no salvage value. After the sale, the equipment is expected to have a 5-year useful life and no salvage value. Both companies depreciate equipment on a straight-line basis.

Based on the preceding information, how much of the gain on sale of the equipment recorded by Mortar for 20X8 will be recognized in 20X9?

Group of answer choices
$26,000
$0
$13,000
$15,000
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