How to compute cost recovery and the gain/loss from the sale of property along with a description of the character of the gain or loss for each?
Depreciation Rate for Recovery Period Table
This is the Sale of Business Property Assignment Use the information below to compute cost recovery and the gain/loss from the sale of property along with a description of the character of the gain or loss for each. I have provided tables that you can complete to help you get the answers Zelda, a calendar year corporation, made the following (and only) purchases of property: Recovery Period Original Cost Case Furniture Equipment Machine Auto (80% business use) Office Building In Service 6/16/2016 10/23/2016 7/21/2017 $5,9947 yrs. $25,0005 yrs. $652,345 7 yrs 8/3/2017 $28,138 5 yrs. 12/12/2017 $2,108,341? In 2016, Zelda did not elect any 179 expensing or bonus depreciation. In 2017, Zelda took as much 179 deduction as allowable on the longest life asset eligible. On December 22, 2018, Zelda sold the following property for the following sales prices: Sales Price Asset Equipment Machine Office Building $14,800 $705,000 $2,109,450 In 2016, net 1231 ordinary losses of $37,000 were recognized. Zelda's taxable income is in the tens of millions each year. Assume a tax rate of 35% You are going to compute cost recovery and any gain/loss realized and recognized for this property. You can use the tables below or show your work in some other way. It must be reasonably easy to follow and include descriptions so it can be graded This is the Sale of Business Property Assignment Use the information below to compute cost recovery and the gain/loss from the sale of property along with a description of the character of the gain or loss for each. I have provided tables that you can complete to help you get the answers Zelda, a calendar year corporation, made the following (and only) purchases of property: Recovery Period Original Cost Case Furniture Equipment Machine Auto (80% business use) Office Building In Service 6/16/2016 10/23/2016 7/21/2017 $5,9947 yrs. $25,0005 yrs. $652,345 7 yrs 8/3/2017 $28,138 5 yrs. 12/12/2017 $2,108,341? In 2016, Zelda did not elect any 179 expensing or bonus depreciation. In 2017, Zelda took as much 179 deduction as allowable on the longest life asset eligible. On December 22, 2018, Zelda sold the following property for the following sales prices: Sales Price Asset Equipment Machine Office Building $14,800 $705,000 $2,109,450 In 2016, net 1231 ordinary losses of $37,000 were recognized. Zelda's taxable income is in the tens of millions each year. Assume a tax rate of 35% You are going to compute cost recovery and any gain/loss realized and recognized for this property. You can use the tables below or show your work in some other way. It must be reasonably easy to follow and include descriptions so it can be graded
