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Old 10-19-2010, 05:16 PM
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C Corp to S Corp

If a C-Corp acquired a machine for $100,000 8/15/2005. Then elected to become an S Corp in 2009. We sold the machine on 2/13/2010 for $40,000, which is payable to us in four annual installments plus interest. What amount of ordinary income will we report on the sale?



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