Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i would like an explanation pls n thanks :) capital gain! [12] John owned a printing business and sold the following assets in 2021: Printing

i would like an explanation pls n thanks :)
image text in transcribed
capital gain! [12] John owned a printing business and sold the following assets in 2021: Printing press: Sales price $25,000 Original cost 20,000 Allowed or allowable 8,000 depreciation Computer equipment: Sales price $30,000 Original cost 28,000 Allowed or allowable 14,000 depreciation John had a net Sec. 1231 loss of $6,000 in 2020. What is the amount and character of John's gain for 2021? A. $14,000 ordinary income: $15,000 capital gain. B. $22,000 ordinary income: $7,000 capital gain. C. $28,000 ordinary income: $1,000 capital gain. D. $0 ordinary income: $29,000 capital gain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

Students also viewed these Accounting questions