1. On August 18th, 2020, Hannah (an individual) purchased a business-use Racehorse (for $100,000) that meets the qualifications to be depreciated over a 3-year life. He was the only asset purchased this year. She began to depreciate the horse with MACRS tables and used no other forms of depreciation (and won some great races along the way).

Hannah is focusing on Accounting, for now, so she sold the Racehorse on November 1^st, 2021 to a wonderful farm that will let him retire in peace (Sold him for $60,000). State the total gain/loss on the sale of the Racehorse. Ignore character and taxes paid.

Answer rating: 100% (QA)

Solution Hannah bought the horse at 100000 on 18th August 2020Hannah uses MACRS method for depreciat... View the full answer