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Dorothy Operates a Pet Store as a Sole Proprietorship

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Dorothy operates a pet store as a sole proprietorship.During the year,she sells the business to Florian for $200,000.The assets sold and the allocation of the purchase price are as follows:
Dorothy operates a pet store as a sole proprietorship.During the year,she sells the business to Florian for $200,000.The assets sold and the allocation of the purchase price are as follows: Dorothy acquired the building in 1997 for $100,000 of which $20,000 was allocated to the land.She paid $40,000 for the equipment in the same year.What are the tax consequences of the liquidation for Dorothy?
Dorothy acquired the building in 1997 for $100,000 of which $20,000 was allocated to the land.She paid $40,000 for the equipment in the same year.What are the tax consequences of the liquidation for Dorothy?

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Dorothy will recognize a Section 1231 ga...

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