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Business, 10.10.2019 18:00 Meliiiii

Walnut company acquires a new machine for $35,000 and uses it in walnut's manufacturing operations. a few months after walnut places the machine in service, it discovers that the machine is not suitable for walnut's business. walnut had fully expensed the machine in the year of acquisition using § 179. walnut sells the machine for $5,000 in the tax year after it was acquired, but held the machine only for a total of 10 months. what was the tax status of the machine when it was disposed of and the amount of the gain or loss?

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