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A Duplex Was Purchases for $120,000 and Depreciation of $3,300

Question 2

Essay

A duplex was purchases for $120,000 and depreciation of $3,300 has been taken for the last seven years.The net proceeds from the sale of the property is $135,000.
(a)Assuming the property qualifies for capital gains treatment at a 15% rate,what is the tax owed?
(b)What are the net funds from the sale?

Correct Answer:

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