In 2012, Edward Edmonds sold a piece of equipment from his business for $160,000. fte equipment was purchased in 2008 for $144,000, had a useful life of ﬁve years, and was depreciated on a straight-line basis. A total of $100,800 depreciation was taken.
(a.) How is the gain or loss on the sale treated?
(b.) How would Edward have treated the gain or loss if he had sold the property for $30,000?

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The Answer of In 2012, Edward Edmonds sold a piece of equipment from his business for $160,000. fte equipment was purchased in 2008 for $144,000, had a useful life of ﬁve years, and was depreciated on a straight-line basis. A total of $100,800 depreciation was taken.
(a.) How is the gain or loss on the sale treated?
(b.) How would Edward have treated the gain or loss if he had sold the property for $30,000?

In 2012, Edward Edmonds Sold a Piece of Equipment from His