In 2016, XYZ Enterprises purchases equipment for $60,000. The equipment is
sold in 2019 after the company has taken $40,000 in depreciation. The sales price
is $57,000. What is the recognized gain (loss) on the sale. If the sale results in
a gain, how much is taxed as ordinary income under section 1245 and how much
is taxed as long term capital gain under section 1231?
Assume the same as #1 above except the sales price is $16,000
Assume the same as #1 above except the sales price is $65,000.
Assume the same facts as #3 above except the company had an unrecaptured
net section 1231 loss of $3,000 in 2016.