L sold a machine that had cost $6,000 during the current year for $3,200.The machine was used in her business for 21 months and was expensed under § 179.L must report ordinary income, rather than potential capital gain, of $3,200.

Question

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Since the machine was expensed under § 179, L cannot claim a potential capital gain on its sale. The sale price of $3,200 will be considered ordinary income.

L Sold a Machine That Had Cost $6,000 During the Current