Chapter 11 Homework Fall 2021 Instructions Due Date: Possible Points 09.24.21 10 On the tab marked 'Schedule of Gains and Losses' complete the following steps. Use the depreciation schedule provided to calculate the basis and accumulated depreciation for each asset disposed of. Do not edit the information in the depreciation schedule tab. 1 For both book and tax purposes, calculate the realized gain or loss for each asset individually 2 Calcuate the total 1245 gain/(loss) and the total 1250 gain/(loss) 3 Calculate the depreciation recapture (if any) for each asset individually 4 Calculate the book to tax difference on the total gain or loss Book Asset No. Adjusted Basis Gain/(Loss) on Sale 1 2. Asset Descriptions Building Land Computer Equipment Software Furniture & Fixtures Date of Sale Date Acquired Proceeds 07.01.21 500,000 07.01.21 750,000 07.01.21 10,000 07.01.21 5,500 07.01.21 7,500 4 5 7 Net Gain/(Loss) From Sale of Assets Tax Ordinary Income Recapture Gain/(Loss) on Sale Capital Adjusted Basis Asset No. 1 2 Asset Descriptions Building Land Computer Equipment Software Furniture & Fixtures Date of Sale Date Acquired Proceeds 07.01.21 500,000 07.01.21 750,000 07.01.21 10,000 07.01.21 5,500 07.01.21 7,500 4 5 7 Net Gain/(Loss) From Sale of Assets Total 1245 Gain/Loss Total 1250 Gain/Loss Net Gain/(Loss) From Sale of Assets HINT: The two green cells need to be the same number. Bonus Depreciation Book Asset No. 1 2 4 5 7 Asset Description Building Land Computer Equipment Software Furniture & Fixtures Beginning A/D 475,000 2021 Depreciation 95.000 Date in Service 01.01.2016 01.01.2016 02.10.2017 03.15.2018 04.15.2019 Ending A/D 570,000 Basis 950.000 300,000 35.000 20.000 80.000 Life 10.00 N/A 10.00 10.00 10.00 14,000 6,000 16,000 3.500 2.000 8,000 17.500 8.000 24,000 Total 1.385.000 511,000 108.500 619,500 Basis Bonus Depreciation Asset Description Building Land Computer Equipment Software Furniture & Fixtures Date in Service 01.01.2016 01.01.2016 02.10.2017 03.15.2018 04.15.2019 950,000 300.000 Beginning A/D 120,840 2021 Depreciation 24 358 Life 39.00 N/A 5.00 3100 7.00 Ending A/D 145, 198 Tax Asset No. 1 2 2 4 23 24 7 25 26 27 Total 28 29 30 31 32 35,000 20,000 80.000 17.500 20.000 80,000 2,016 31,976 20,000 80,000 33,992 20.000 80,000 1,385,000 117.500 252,816 26,374 279.190