What is the result for richard

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Reference no: EM132700279

Problem 1: Richard sold two machines used in his business. They were the only two assets sold during the year. After netting the two transactions, what is the result?

Machine 1 Cost $10,000 Acc.Depreciation $6,000 Amount realized $2,000

Machine 2 Cost $10,000 Acc.Depreciation $6,000 Amount realized $7,000

Select one:

a. $1000 ordinary income

b. $3000 Capital gain and $2000 Capital Loss

c. $3000 Capital gain and $2000 ordinary loss

d. $3000 capital loss

e. $3000 ordinary income and $2000 capital loss

Reference no: EM132700279

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