S sold a business microcomputer for $2,000 that she had purchased for $2,500 several months earlier.Assume the depreciation deducted under MACRS on the computer for the actual holding period was $1,795.What is the amount of S's gain recognized on this sale?
A)$0
B)$500
C)$1,795
D)$1,295

Question

Quizplus · Accepted Answer

The gain recognized on the sale is calculated as follows: 
Sale price ($2,000) - Adjusted basis ($2,500 - depreciation of $1,795) = $1,295 gain. So the correct answer is (D).

S Sold a Business Microcomputer for $2,000 That She Had