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