Tom Truman sells a business machine that he has owned for four years for 27000

Tom truman sells a business machine that he has owned

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4.Tom Truman sells a business machine that he has owned for four years for $27,000.Tom purchased the machine for $42,000 and has taken $18,000 in depreciation subjectto depreciation recapture. How much and what type of gain will result from this sale? a.$3,000 long-term capital gainb.$3,000 ordinary incomec.$18,000 ordinary income; $3,000 long-term capital gaind.$21,000 ordinary income
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21.d. The items listed in (a), (b), (c), and (e) are all items that are listed as not being capitalassets. Temporary investment of idle business cash in marketable corporate securities,however, is a capital asset.2.e. The deductible capital loss is $3,000 as follows:Net short-term capital loss ($1,900 - $4,000 - $700)($2,800)Net long-term capital loss ($800 - $1,000)(200)Deductible capital loss($3,000) 3.a. Steve has the following: an LTCG of $2,800 on A stock; an LTCL of $3,000 on Bstock; an STCL of $1,500 on C stock; and an STCL of $4,000 on D stock. Therefore, hehas a net LTCL of $200 and a net STCL of $5,500. With a net overall loss of $5,700, hegets a $3,000 deduction and a carryover of $2,700.
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