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Question - Umair sold some equipment he used in his business in 8/29/19 that was originally purchased for $65,000 on 11/21/18. The equipment was depreciated using the 7 yr MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer:
Assume Umair sold the equipment for $45,000:
Required -
1. What is the amount of realized gain or loss on the sale of equipment?
2. Is the nature of the gain or loss considered ordinary or long term?
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