MC$\mathrm{.}01-049$

MC$\mathrm{.}01-053$

MC$\mathrm{.}01-060$

MC$\mathrm{.}01-064$

MC$\mathrm{.}02-034$

MC$\mathrm{.}02-039$

MC$\mathrm{.}02-046$

MC$\mathrm{.}03-042$

MC$\mathrm{.}03-048$

MC$\mathrm{.}03-056$

MC$\mathrm{.}03-068$

MC$\mathrm{.}04-054$

MC$\mathrm{.}04-065$

MC$\mathrm{.}04-090$

MC$\mathrm{.}05-042$

MC$\mathrm{.}05-049$

MC$\mathrm{.}05-058$

MC$\mathrm{.}05-075$

MC$\mathrm{.}07-036$

MC$\mathrm{.}07-038$

MC$\mathrm{.}14-019$

MC$\mathrm{.}14-020$

MC$\mathrm{.}14-026$

MC$\mathrm{.}14-032$

MC$\mathrm{.}14-035$

MC$\mathrm{.}14-039$

MC$\mathrm{.}10-063$

MC$\mathrm{.}10-069$

MC$\mathrm{.}10-079$

MC$\mathrm{.}11-052$

MC$\mathrm{.}12-044$

MC$\mathrm{.}12-046$

MC$\mathrm{.}12-055$

MC$\mathrm{.}16-076$

MC$\mathrm{.}16-077$

MC$\mathrm{.}16-079$

MC$\mathrm{.}16-114$

MC$\mathrm{.}16-121$

MC$\mathrm{.}17-049$

MC$\mathrm{.}17-053$

MC$\mathrm{.}17-060$

MC$\mathrm{.}17-080$

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Progress:$17/44$ items

Question Content Area

During the current year, Hawk Corporation sold equipment for $$600,000($adjusted basis of $$360,000).$ The equipment was purchased a few years ago for $$760,000$ and $$400,000$ in MACRS deductions have been claimed. ADS depreciation would have been $$300,000.$ As a result of the sale, the adjustment to taxable income needed to determine current E & P is:

a$.$ Add $$100,000.$

b$.$ Subtract $$100,000.$

c$.$ Add $$80,000.$

d$.$ No adjustment is required.