Joaquin purchased a $110,000 crane for a construction business. The crane was sold for $80,000 after taking $61,600 of depreciation. Assume Joaquin is in the 35% tax rate bracket.

Required:

1. On what form would the gain or loss originally be reported? 
2. What is the amount of gain or loss on the sale?
3. What amount of the gain or loss is subject to ordinary tax rates?

Answer rating: 100% (QA)

1 Form for Reporting Gain or Loss The gain or loss on the sale of the crane would be reported ... View the full answer