Patriot industries recently sold its fin fabrication

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Patriot Industries recently sold its fin fabrication machine for $150,000. The machine originally cost $500,000 and has a current book value of $100,000. Patriot's marginal tax rate is 35 percent for ordinary income and 35 percent for capital gains income.

a. What amount of gain has Patriot received from this transaction?

b. Is this a capital or ordinary gain?

c. How much tax must Patriot pay on this transaction?

Reference no: EM13363909

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