Question
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000 and it has claimed $33,800 of
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000 and it has claimed $33,800 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:
c. Assuming that Hauswirth receives $27,500 in cash in year 0 and a $88,500 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain in year 0 and in year 1. (Round "Gross Profit Percentage" to 2 decimal places.)
Description | Amount | Character | |
Amount Realized | $116,000 | N/A | |
Original Basis | $102,000 | N/A | |
Accumulated Depreciation | $33,800 | N/A | |
Adjusted Basis | $68,200 | N/A | |
Gain (Loss) Realized | $47,800 | N/A | |
Depreciation Recapture | ? | Ordinary Income | |
Gain Eligible for Installment Reporting | ? | N/A | |
Gross Profit Percentage | ? | % | N/A |
Installment Gain (Loss) in year 0 | ? | ? | |
Installment Gain (Loss) in year 1 | ? | ? |
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