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Problem - Alexis purchased a rental house 3 years ago for $290,000. Her depreciation to date is $35,000. Due to a decrease in real estate prices, she sells the house for only $280,000 in 2019. What is her gain or loss for tax purposes?
a. $0
b. $10,000 loss
c. $10,000 gain
d. $35,000 loss
e. $25,000 gain
How much is the total compensation expense and what entry is made on January 1, 2007?
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