Determining the amount of ordinary income

Reference no: EM139763

A C corporation acquired a machine for $100,000 and placed it in service on August 15, 2007. The corporation elected S corporation status at the beginning of 2011. On February 13, 2012, the property was sold for $40,000, payable in four yearly instalments of $10,000 plus interest. What is the amount of ordinary income to be reported from the sale?

Reference no: EM139763

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