In the current year, Raven sold machinery with a fair market value of $200,000. The machinery's original basis was $190,500 and Raven's accumulated depreciation on the machinery was $40,400, so its adjusted basis to Raven was $150,100. Raven received $49,900 in the current year and a note paying Raven $75,050 a year for two years beginning next year. What is the amount and character of the gain that Raven will recognize in the current year?

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The Answer of In the current year, Raven sold machinery with a fair market value of $200,000. The machinery's original basis was $190,500 and Raven's accumulated depreciation on the machinery was $40,400, so its adjusted basis to Raven was $150,100. Raven received $49,900 in the current year and a note paying Raven $75,050 a year for two years beginning next year. What is the amount and character of the gain that Raven will recognize in the current year?

In the Current Year, Raven Sold Machinery with a Fair