A$.$ Tax Income$/$Gain Computation

Firm D purchased a tangible business asset several years ago for $$100,000$ and has

accumulated $$40,000$ MACRS depreciation through date of sale. As a result, its

adjusted basis in the asset is $$60,000.$ Compute the $$ordinary income$$ and $$capital

gain$$ components of the overall realized gain under the following sale price

assumptions:

Assumption $1-$ $$100,000$

Assumption $2-$ $ $90,000$

Assumption $3-$ $$105,000$

Assumption $4-$ $ $48,000$