In 2014,Beth sold equipment used in her business.Her basis in the property was $300,000 ($500,000 cost less $200,000 of depreciation).Beth sold the property for $400,000,with $100,000 due on the date of the sale and $300,000 (plus interest at the Federal rate)due in 2015.Beth's recognized gain from the installment sale in 2014 is:

Question

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The total gain is $100,000 ($400,000 - $300,000).This is all depreciation recapture and,thus,must be recognized in the year of sale (2014).

In 2014,Beth Sold Equipment Used in Her Business