What is the amount and character of the gain and loss

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Reference no: EM131217775

The Gamecock Corporation purchased new equipment (7-year MACRS property, ½ year convention) on August 21, 2014 for $2,150,000 [this was their only purchase of depreciable property during the year]. In order to lower their current period taxes they elected to deduct the maximum amount allowed in 2014. The equipment was sold on December 7, 2016.

Required: What is the amount and character of the gain/loss in each of the following independent situations?

(a) Selling price = $300,000

(b) Selling price = $700,000

Reference no: EM131217775

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