Jackson, Inc. sells a piece of machinery for $12,000. The machinery was originally purchased four years ago for $25,000 and the company has claimed depreciation deductions totaling $18,000, making the adjusted basis $7,000 at the time of sale. How much, if any, of the gain is subject to depreciation recapture as Section 1245 gain? 

 a. $5,000 

b. $12,000 

c. $0 

d. $7,000

Answer rating: 100% (QA)

To determine the amount of gain subject to depreciation recapture as Section 1245 gain we need to co... View the full answer