Lily sells her manufacturing plant and land originally purchased in 1982.Accelerated depreciation had been taken on the building,but the building is now fully depreciated.Because it is fully depreciated,there is no "additional depreciation." Lily is in the 37% marginal tax bracket.Other information is as follows:
Property Original cost Total depreciation Adjusted basis Selling price
Plant $2,800,000 $2,800,000 $0 $3,000,000
Land $ 500,000 $500,000 $800,000
She has not sold any other assets this year.A review of her file indicates that the only asset dispositions in the past five years was a truck sold for a $10,000 loss last year.What are the tax consequences of the sale (type of gain; rates at which taxed)?

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The Answer of Lily sells her manufacturing plant and land originally purchased in 1982.Accelerated depreciation had been taken on the building,but the building is now fully depreciated.Because it is fully depreciated,there is no "additional depreciation." Lily is in the 37% marginal tax bracket.Other information is as follows:
Property Original cost Total depreciation Adjusted basis Selling price
Plant $2,800,000 $2,800,000 $0 $3,000,000
Land $ 500,000 $500,000 $800,000
She has not sold any other assets this year.A review of her file indicates that the only asset dispositions in the past five years was a truck sold for a $10,000 loss last year.What are the tax consequences of the sale (type of gain; rates at which taxed)?

Lily Sells Her Manufacturing Plant and Land Originally Purchased in 1982.Accelerated