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justinchou814
justinchou814
10.12.2021 • 
Business

A lessor is paid $45,000 by its commercial tenant as a lease cancellation fee. The tenant wanted to get out of its lease so it could move to a different building. The lessor had held the lease for three years before it was canceled. The lessor had a zero tax basis for the lease. The lessor has received:.a. Long-term capital gain of $45,000.b. Short-term capital gain of $45,000.c. Ordinary income of $45,000.d. Neither gain nor loss.

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