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Question - Jake purchased a $205,000 crane for his construction business. He sold the crane for $150,000 after taking $115,000 of depreciation. Assume Jake is in the 33% tax rate bracket.
a. On what form would the gain or loss originally be reported?
b. What is the amount of gain or loss on the sale?
c. What amount of the gain or loss is subject to ordinary tax rates?
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