Terry has sold equipment used in her business. She acquired the equipment three years ago for $50,000 and has recognized $30,000 of depreciation across the years in use. In order to recognize any Sec. 1231 gain, she must sell the equipment for more than
A) $0.
B) $20,000.
C) $30,000.
D) $50,000.
D) $50,000.
Any sales price of $50,000 or less will result in any gain being recaptured as ordinary income under the depreciation recapture provisions of Sec. 1245.
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