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Heron Company purchases commercial realty on November 13, 2002, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 22,

Heron Company purchases commercial realty on November 13, 2002, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 22, 2020, for $850,000.

What are the tax consequences of the sale of realty if Heron is (a) a C corporation and (b) a sole proprietorship?

a. If Heron is a C corporation, what is the amount of each type of gain recognized?

If an amount is zero, enter "0". Round your answers to the nearest dollar.

Character of Gain
Ordinary income under 1245 $fill in the blank ba02540cbfe6fb7_1
Ordinary income under 1250 $fill in the blank ba02540cbfe6fb7_2
Ordinary income under 291 fill in the blank ba02540cbfe6fb7_3
1231 gain fill in the blank ba02540cbfe6fb7_4
Total recognized gain $fill in the blank ba02540cbfe6fb7_5

b. If Heron is a sole proprietorship, what is the amount of each type of gain recognized?

Character of Gain
Ordinary income under 1245 $fill in the blank 541c3b028f80f9f_1
Ordinary income under 1250 $fill in the blank 541c3b028f80f9f_2
Ordinary income under 291 fill in the blank 541c3b028f80f9f_3
1231 gain fill in the blank 541c3b028f80f9f_4
Total recognized gain $fill in the blank 541c3b028f80f9f_5

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