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tino4ka555 [31]
3 years ago
12

Bozeman sold equipment that it uses in its business for $80,000. Bozeman bought the equipment two years ago for $75,000 and has

claimed $20,000 of depreciation expense. What is the amount and character of Bozeman's gain or loss?A. $25,000 section 1231 gain.B. $20,000 ordinary gain, and $5,000 section 1231 gain.C. $5,000 ordinary gain, and $20,000 section 1231 gain.D. $25,000 capital gain.E. None of the above.
Business
1 answer:
Ad libitum [116K]3 years ago
3 0

Answer:

Option (D) is correct.

Explanation:

Selling amount of equipment = $80,000

Purchasing price 2 years ago = $75,000

Depreciation expense = $20,000

Gain(Loss) = Cash proceeds - Book value

                  = $80,000 - ($75,000 - $20,000)

                  = $80,000 - $55,000

Capital gain = $25,000

Therefore, the amount and character of Bozeman's gain is $25,000.

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A contract is an agreement between two or more parties which contains the terms and conditions of the contract and which also serve as an evidence that the two parties in the contract has a duty to perform to each other. The terms and conditions of the contract can be enforced in the court of law in case of a breach of contract which may come from either parties in the contract agreement. While, a contract interference is a kind of breach of contract in which one vendor put a pressure on the organization in which they offer service to withdraw from the contract the organization earlier had with one of their competitors in the market. This contract interference can occur when a vendor either force or put a financial inducement on the organization with a view to make them consider their proposal to the organization to eventually agree to abandon the contract they had with their competitors in favour of getting the contract instead of their competitors who should get the contract.

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