2- A taxpayer disposed of an equipment used in one's trade or business at FMV of $100. The equipment was purchased at $100 and took depreciations of $40 prior to the disposition.Determine the tax consequences of the disposition.

3- A taxpayer disposed of a commercial building in one's trade or business at FMV of 100. The building was purchased in 1983 at $100 and took deprecations of $40 prior to the disposition. Excess depreciation taken was $5. Determine the tax consequences of the disposition.

Answer rating: 100% (QA)

2 Tax consequences of the disposition of the equipment The taxpayer disposed of the equipment at its ... View the full answer