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You paid a contractor $2,000 to cut standing timber held for business use for over...

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Accounting

You paid a contractor $2,000 to cut standing timber held for business use for over 1 year into logs and sold the cut logs to a mill for $33,000. The fair market value of the standing timber was $26,000 on January 1 and your basis in it was $5,000. The capital gain rate is 15% and the ordinary income rate is 40%. Calculate the taxes.

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