Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A taxpayer sold for $200,000 equipment that had an adjusted basis of $180,000. Through the date of the sale, the taxpayer had deducted $30,000 of

A taxpayer sold for $200,000 equipment that had an adjusted basis of $180,000. Through the date of the sale, the taxpayer had deducted $30,000 of depreciation. Of this amount, $17,000 was in excess of straight-line depreciation. What amount of gain would be recaptured under Section 1245 (Gain from Dispositions of Certain Depreciable Property)?

a. $20,000

b. $30,000

c. $17,000

d. $13,000

 

Step by Step Solution

3.30 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

Choice A is correct Under Section 1245 the amount of depreciation in excess of straightline deprecia... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
60617e48d9857_487.pdf

180 KBs PDF File

Word file Icon
60617e48d9857_487.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Taxation 2019

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

12th Edition

1260091880, 1260091885, 1260158675, 978-1260158670

More Books

Students also viewed these Accounting questions

Question

Show that 15 is an inverse of 7 modulo 26.

Answered: 1 week ago

Question

Movement of cash into and out of a business

Answered: 1 week ago