Harry Clarke and Russell Addison own Nutty for U (NFU), a partnership located on Waverly Avenue in Windy City, IL. NFU is a very popular store for nuts, popcorn, and candy, but its owners would like to move their location closer to a popular ballpark. NFU will be selling the following assets and would like to know the tax implications of each sale. Asset Cost Inventory $27,000 Computer $2,500 Machinery $34,000 Equipment $32,000 Commercial Building $350,000 Delivery Truck $15,000 Unimproved Land-Investment $16,000 Accumulated Depreciation Holding Period $0 1 month $2,500 18 months $27,000 3 years $28,000 4 years $51,000 4 years $1,000 7 months $0 1 year For each item in column A, calculate the gain or loss and enter it in the associated cell in column B. Enter income and gains as positive values and losses and expenses as negative values with parenthesis. If an answer is zero, enter a zero (0). Also, enter the character of the gain or loss in column C by clicking the cell and selecting from the list provided. A1 lock copy cut paste A B 1 Gain/loss Character E 123 2 123 3 123 4 123 !!! 5 Calculate the gain/loss and character from the inventory sale Calculate the gain/loss and character from the computer sale Calculate the gain/loss and character from the machinery sale Calculate the gain/loss and character from the equipment sale Calculate the amount of Section 1231 gain from the sale of the building Calculate the gain/loss and character from the truck sale Calculate the gain/loss and character from the land sale 123 6 1231 123 7 123 iii 8 Harry Clarke and Russell Addison own Nutty for U (NFU), a partnership located on Waverly Avenue in Windy City, IL. NFU is a very popular store for nuts, popcorn, and candy, but its owners would like to move their location closer to a popular ballpark. NFU will be selling the following assets and would like to know the tax implications of each sale. Asset Cost Inventory $27,000 Computer $2,500 Machinery $34,000 Equipment $32,000 Commercial Building $350,000 Delivery Truck $15,000 Unimproved Land-Investment $16,000 Accumulated Depreciation Holding Period $0 1 month $2,500 18 months $27,000 3 years $28,000 4 years $51,000 4 years $1,000 7 months $0 1 year For each item in column A, calculate the gain or loss and enter it in the associated cell in column B. Enter income and gains as positive values and losses and expenses as negative values with parenthesis. If an answer is zero, enter a zero (0). Also, enter the character of the gain or loss in column C by clicking the cell and selecting from the list provided. A1 lock copy cut paste A B 1 Gain/loss Character E 123 2 123 3 123 4 123 !!! 5 Calculate the gain/loss and character from the inventory sale Calculate the gain/loss and character from the computer sale Calculate the gain/loss and character from the machinery sale Calculate the gain/loss and character from the equipment sale Calculate the amount of Section 1231 gain from the sale of the building Calculate the gain/loss and character from the truck sale Calculate the gain/loss and character from the land sale 123 6 1231 123 7 123 iii 8
