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Hazel owns an event planning company that specializes in very high-end events. Several years ago, Hazel purchased a magnificent chocolate fountain for $3,000 and has since taken $1,200 in depreciation deductions on the fountain. Hazel is now ready to replace the fountain with tools for creating ice sculptures, but she is not sure what the tax consequences of selling the fountain will be. Which of the following statements is true regarding the tax consequences of selling the fountain?A. If Hazel sells the chocolate fountain for $1,800, she will have a $1,200 ordinary loss. B. If Hazel sells the chocolate fountain for $1,700, she will have a $100 capital loss. C. If Hazel sells the chocolate fountain for $2,000, she will have an ordinary gain of $200 and no capital gain. D. If Hazel sells the choclate fountain for $3,300, she will have a $1,500 capital gain.
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Hazel owns an event planning company that specializes in very high-end events. Several years ago, Ha...
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