Chapter 11 Homework Assignment 28 Part 5 of 6 2.7 points eBook Print References ! Required information Problem 11-45 (LO 11-3, LO 11-4, LO 11-5) (Static) [The following information applies to the questions displayed below.] Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. Problem 11-45 Part-e (Static) Required: e1. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000? e2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)? Complete this question by entering your answers in the tabs below. Required e1 Required e2 Saved Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000? Description Total Gain or (Loss) Recognized Ordinary Income - 291 depreciation recapture 1231 gain or loss $ Amount 50,000

Required information Problem 11-45 (LO 11-3, LO 11-4, LO 11-5) (Static) [The folfowing information applles to the questions dispiayed below] Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following aiternative scenarios (assume Hart had no property transactions other than those described in the problemk: Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Einter zero if applicable. Problem 11-45 Part-e (Static) Required: e1. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000 ? e2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)? Complete this question by entering your answers in the tabs below. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000