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Question - Ashton, a college student, bought a truck in 2013 for $6,000. He used the truck 70% of the time as a distributor for the local newspaper and 30% of the time for personal use. The truck has a five-year recovery period, and he claimed depreciation deductions of $840 in 2013 and $1,344 in 2014. Ashton sells the truck on June 20, 2015 for $3,000.
a. What is the amount of allowable depreciation in 2015?
b. What is Ashton's realized and recognized gain or loss and what is its character?
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