Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $78,000 and it has claimed $32,600 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.)

Required:

1. a. Assuming that Hauswirth receives $56,300 in cash for the warehouse, compute the amount and character of Hauswirths recognized gain or loss on the sale.
2. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $56,300, compute Hauswirths realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.
3. c. Assuming that Hauswirth receives $38,000 in cash in year 0 and a $51,500 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain or loss in year 0 and in year 1. (Round "Gross Profit Percentage" to 2 decimal places.)

Complete this question by entering your answers in the tabs below.

• Req a
• Req b
• Req c

Assuming that Hauswirth receives $56,300 in cash for the warehouse, compute the amount and character of Hauswirths recognized gain or loss on the sale.

a)

Recognized Gain/(Loss)	$10,900
Character of Recognized Gain/(Loss):
1231 gain/(loss)

Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $56,300, compute Hauswirths realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.

b)

Gain realized	$10,900
Gain recognized	$0
Deferred gain	$10,900
Adjusted basis in new property	$45,400

c)

Assuming that Hauswirth receives $38,000 in cash in year 0 and a $51,500 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain or loss in year 0 and in year 1. (Round "Gross Profit Percentage" to 2 decimal places.)

Description	Amount		Character
Amount Realized	$89,500
Original Basis	$78,000
Accumulated Depreciation	$(32,600)
Adjusted Basis	$45,400
Gain (Loss) Realized	$44,100
Depreciation Recapture			Ordinary Income
Gain Eligible for Installment Reporting
Gross Profit Percentage		%
Installment Gain (Loss) in year 0			Ordinary Income
Installment Gain (Loss) in year 1			Section 1231 gain