Question
4. Jim, the owner of a sole proprietorship, sold the following assets in 2019 Asset Cost Acquired Depreciation Sales Price Sale Date Truck $48,000 07/31/17
4. Jim, the owner of a sole proprietorship, sold the following assets in 2019
| Asset | Cost | Acquired | Depreciation | Sales Price | Sale Date |
| Truck | $48,000 | 07/31/17 | $7,737 | $35,000 | 07/22/19 |
| Trailer | $31,000 | 12/15/17 | $19,096 | $24,000 | 05/01/19 |
| Land | $67,000 | 02/15/17 | $0 | $75,000 | 06/30/19 |
Complete the following table: and the character of the realized and recognized gain or loss from the sale of each asset. Assume the land was held for investment and had a FMV of $73,000.
| Asset | Adjusted Basis | Gain (Loss) Recognized | Section 1231 or 1245 Asset | Amount subject to Section 1245 Recapture | The gain (loss) is considered to be ordinary capital for tax purposes | ||
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Cash And Financial Management Study Text
Authors: Kaplan
1st Edition
9781839960529
