Frank operates a construction business in Dallas, Texas. On May 1, 2014, Frank purchased a warehouse for his business. The warehouse cost $500,000. In June 2014, Frank purchased some new equipment for the business. The equipment cost $200,000. Frank took $8,000 of depreciation on the warehouse in 2014 and $16,000 in 2015. Frank took $40,000 of depreciation on the equipment in 2014 and $80,000 in 2015. Frank decided to sell the warehouse and equipment so he could upgrade the business. He sold the …
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