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9 Required information The following information applies to the questions displayed below.] Luke sold a building and the land on which the building sits to

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9 Required information The following information applies to the questions displayed below.] Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corp, at fair market value. The fair market value of the building was determined to be $480,000; Luke built the building several years ago at a cost of $410,000. Luke had claimed $89,000 of depreciation expense on the building. The fair market value of the land was determined to be $272,000 at the time of the sale; Luke purchased the land many years ago for $199,500 b. What is the amount and character of Luke's recognized gain or loss on the land? ount 0 Required information [The following information applies to the questions displayed below.j Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as 51231 assets. The first is machinery and will generate a $23,500 1231 loss on the sale. The second is land that will generate a $13,900 $1231 gain on the sale. Aruna's ordinary marginal tax rate is 32 percent. (Input all amounts as positive values.) a. Assuming she sells both assets in December of year 1 (the current year), what effect will the sales have on Aruna's tax liability? s tax will Required information The following information applies to the questions displayed below Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as 51231 assets. The first is machinery and will generate a $23,500 $1231 loss on the sale. The second is land that will generate a $13,900 $1231 gain on the sale. Aruna's ordinary marginal tax rate is 32 percent. (Input all amounts as positive values.) b. Assuming that Aruna sells the land in December of year 1 and the machinery in January of year 2, what offect will the sales have on Aruna's tax liability for each year? Aruna's tax n year 1 by in year 2 by Aruna's tax

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