Sylvia owns two items of business equipment. They were both purchased in 2006 for $100,000, both have a seven-year recovery period, and both have an adjusted basis of $37,490. Sylvia is considering selling these assets in 2010. One of them is worth $40,000, and the other is worth $23,000. Since both items were used in her business, Sylvia simply assumes that the loss on one will be offset against the gain from the other and the net gain or loss will increase or reduce her business income. Is she correct?
Paper#32313 | Written in 18-Jul-2015Price : $24