Question:
Jake purchased a $205,000 crane for his construction business. He sold the crane for $150,000 after taking $115,000 of depreciation. Assume Jake is in the 33% tax rate bracket.
a. On what form would the gain or loss originally be reported? Form
b. What is the amount of gain or loss on the sale? $
c. What amount of the gain or loss is subject to ordinary tax rates? $