Problem:
Phillip purchased business equipment for $100,000 in 2015 and has taken $40,000 of regular MACRS depreciation. Phillip sells the equipment in 2022 for $110,000. How is Phillip's gain taxed? Group of answer choices $10,000 ordinary income $40,000 LT capital gain $50,000 LT capital gain $50,000 ordinary income $40,000 ordinary income $10,000 LT capital gain