43) a. Cindy operates a consulting business. On January 1st of year one, Cindy purchases...
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Accounting
43)
a. Cindy operates a consulting business. On January 1st of year one, Cindy purchases an office building to be used in her business for $150,000. Over the next five years, Cindy claims depreciation deductions of $5,000 per year in computing her taxable income. On January 1st of year six, Cindy sells the building for $170,000. What is the amount of Cindys gain or loss on the sale of the building in year six? (ignore conventions)
b. Assume the same facts as in problem 43, except this time Cindy sells the building for $120,000. What is the amount of Cindys gain or loss on the sale of the building in year six?
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