Amber Industries (a sole proprietorship) sold three § 1231 assets during 2016. Data on these property dispositions are as follows:

a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset.

b. Assuming that Amber has $5,000 nonrecaptured net § 1231 losses from the five prior years, how much of the 2016 recognized gains is treated as capital gains?

Transcribed Image Text:

Sold on Cost Sold for Acquired 10/10/12 10/16/13 03/12/15 Depreciation Asset 10/10/16 Rack $100,000 35,000 87,000 $100,000 $145,000 3,000 10/10/16 10/10/16 Forklift Bin 31,000 60,000