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Equipment MACRS Year Property Cost Accumulated Depreciation Sales Price Luxury Car 5 Year Property $36,000 $12,000 $20,000 Computer 5 Year Property $1,200 $1,200 $200 Furniture
Equipment | MACRS Year Property | Cost | Accumulated Depreciation | Sales Price |
Luxury Car | 5 Year Property | $36,000 | $12,000 | $20,000 |
Computer | 5 Year Property | $1,200 | $1,200 | $200 |
Furniture | 7 Year Property | $25,000 | $20,000 | $10,000 |
- What will be the tax treatment as follows for the sale of the Luxury Car
- Calculate the Realized Gain or Loss (5pts):
- What will be the character and amount of the Recognized gain? (10 pts)
Character= Ordinary Income
Recognized Gain= $5,000
Luxury Car | Code Section | Character | Amount |
| 1231 |
|
|
| 1245 |
|
|
| 1250 |
|
|
- What will be the tax treatment as follows for the sale of the Computer?
- Calculate the Realized Gain or Loss (5 pts):
- What will be the character and amount of the Recognized gain? (10 pts)
Computer | Code Section | Character | Amount |
| 1231 |
|
|
| 1245 |
|
|
| 1250 |
|
|
- What will be the tax treatment as follows for the sale of the Furniture
- Calculate the Realized Gain or Loss (5 pts):
- What will be the character and amount of the Recognized gain? (10 pts)
Furniture | Code Section | Character | Amount |
| 1231 |
|
|
| 1245 |
|
|
| 1250 |
|
|
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