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Alice owns timber, purchased six years ago, with an adjusted basis of
$50,000. The timber is cut for use in her furniture business on October
1, when the FMV of the timber is $200,000. The FMV of the timber on
January 1 is $190,000. May Alice treat any of the gain as Sec. 1231
gain? If so, how much?
I:13-11
Karen purchased a computer three years ago for $15,300 to use
exclusively in her business. She expensed the entire cost of the
computer under Sec. 179. If she sells the computer during the current
year for $3,721, what is the amount and character of her recognized
gain?
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ACC 456 Week 5 Key Points
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Write a 350-to 700-word paper.
Explain your perspective on tax planning.
Define and differentiate tax avoidance and tax evasion.
Click the Assignment Files tab to submit your assignment as a
Microsoft® Word document.
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