The Pear Corporation owns equipment with a $300,000 adjusted basis. The equipment was purchased six years ago

Question:

The Pear owns equipment with a $300,000 adjusted basis. The equipment was purchased six years ago for $650,000. If Pear sells the equipment for the selling prices given in the three independent cases below, what are the amount and character of Pear’s recognized gain or loss?
Case Selling Price
A …………………………. $407,000
B …………………………. 752,000
C …………………………. 245,000
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...