Alpha Corp is a calendar year accrual method entity for financial reporting and tax purposes. In $2024,$ Alpha Corp completed a number of transactions involving the sale of assets and pays a $21\%$ flat tax rate. Prior to considering these asset sale transactions, Alpha Corp recorded $$257,000$ in net incomefor tax purposes. In addition, Alpha Corp incurred $$7,000$ of losses on the sale of Section $1231$ property last year and $$36,000$ in net capital losses two years ago. The information below provides additional details about the asset sale transactions during the year.

On January $23$rd$,$ the board of directors of Omega Corp announced that the company was bankrupt and owners of the stock should consider it worthless. Alpha Corp owns $5\%$ of the outstanding shares of Omega Corp, which it purchased for $$29,000($more than a year ago$).$

On April $4$th$,$ Alpha Corp sold Truck $1$ for $$43,000.$ The purchaser also agreed to take over the note on Truck $1$ which had $58,000$ in principal payments remaining. Alpha corp paid $78000$ for truck $1$ more than a year ago and had accumulated $39000$ in depreciation by the date of sale. The truck was actively used in operation of alpha corp

On May $15$th$,$ Alpha Corp sold Truck $2$ for $29,500$ plus $$3,000$ worth of industrial cleaning supplies to a person wha owns $90\%$ of all Alpha Corp stock. Alpha Corp paid $$46,000$ for the truck $($more than a year ago$)$ and had accumulated $$12,000$ in depreciation by the date of the sale. The truck was actively used in the operation of Alpha Corp.

On June $28$th$,$ Alpha Corp sold Building $1($a warehouse$)$ and Land $1$ for a total of $$630,000.$ Alpha had paid a total of $$730,000$ for the two assets $($morethan a year ago$).$ For this assignment, treat the transaction as it it is two separate sales as described below:

$1)$ The buyer paid $500,000$ for Building $1.$ Alpha Corp originally paid $$560,000$ for Building $1$ and had accumulated $$160,000$ in MACRS $($straight line$)$ depreciation by the date of the sale. The building was actively used in the operation of Alpha Carp.

$2)$ The buyer paid $$130,000$ for Land $1.$ Alpha Corp originally paid $$170,000$ for the land. The land was actively used in the operation of Alpha corp

On October $22$nd$,$ Alpha Corp sold Machine $1$ for $$63,000.$ Dueto a shortage in the chips used to make Machine $1,$ Alpha Corp was able to sell the machine for more than it had originally paid even though it is a depreciable asset. Alpha Company used the proceeds from the sale to pay off the $$26,000$ note it had on Machine $1.$

Alpha Corp originally paid $$59,000$ for Machine $1($more than a year ago$)$ and had accumulated $$44,000$ in depreciation by the date of the sale. Machine $1$ was actively used in the operation of Alpha Corp.

On December $3$rd$,$ Alpha Corp sold Land $2$ for $$146,000.$ The land was purchased $20$ years ago for $$140,000$ in the hopes it would appreciate $-$ in value.

In April, an intern had accidentally purchased $900$ cases of paper instead of $90$ due to a typing error and the paper company would not accept a return. On December $21$st$,$ Alpha Corp sold $810$ cases of printer paper for $$6,800.$ Alpha agreed to receive $$4,000$ up front and the rest of the purchase price in $6$ months, with no interest. The cases of paper were originally purchased at $$7$ per case. For tax purposes, Alpha Corp capitalizes the costs of supplies and expenses them as used $($i$.$e$.,$ these cases of paper were capitalized with a basis equal to their original purchase price$).$

Required:

a$)$ For each of the transactions, calculate $1)$ the amount realized on the disposition of the asset, $2)$ the adjusted basis of the asset, and $3)$ the total realized gain or loss on the disposition of the asset. Finally, determine the amount of recognized gain or loss and classify the recognized gain or loss as ordinary, section $1231,$ or capital. Do not characterize section $1231$ gains or losses as ordinary or capital unless depreciation recapture applies.

b$)$ Calculate the current year net section $1231$ gain or loss and determine the final character of that gain or loss $($i$.$e$.,$ ordinary or capital$).$

c$)$ Calculate the total amount of current yearordinary and net capital gain or loss $($i$.$e$.,$ do not include any capital loss carryforwards$).$

d$)$ Calculate current year taxable income and tax liability for Alpha Corp including the impact of the asset dispositions and any carryforwards.

e$)$ Calculate the net capital loss carryforward $($if any$).$

f$)$ Determine the amount of any unrecognized gain or loss resulting from the related party transactions $($if any$).$

g$)$ Determine the amount of any gain or loss deferred to the next tax year resulting from the installment sale of paper $($if any$).$