On the last day of its current tax year, Buy Rite LLC received $270,000 when...
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Accounting
On the last day of its current tax year, Buy Rite LLC received $270,000 when it sold a machine it had purchased for $160,000 three years ago to use in its business. At the time of the sale, the basis in the equipment had been reduced to $110,000 due to tax depreciation taken. How much did the members self-employment earnings from Buy Rite increase when the equipment was sold? [Hint: See IRC 1402(a)(3).]
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