IV Ordinary, Capital, 51231 Assets 1 Determine the amount and character of gain (loss recognized from the following asset sales by a proprietorship Amounts are in thousands Asset 51231 25 Gain (Loss) Total Depreciation Adjusted Basis Cost Sales Price Ordinary Equipment $25 $12 $18 $7 $30 Equipment $200 $158 S42 Equipment $50 $20 $30 $45 $15 Warehouse $500 $125 $375 $450 $75 Apartment Building $500 $90 $410 $600 $190 2 Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following investments during the year Classify each gain or loss into its correct basket using the following labels ST 28 LT 25 LT 0 15 20 LT or ORDINARY (not a capital gain(loss)) Purchase Date 3 18 16 INVESTMENT Land held for investment Sale Date 9 6 19 Taxable Gain (Loss) $(21,000) BASKET Apple common stock 5 8 17 8 4 19 16,000 Vanguard Mutual Fund 9 15 18 6 18 19 4,000 8 2 11 6 5 19 50,000 ABC stock (qualifies under 51202) SBC stock (qualifies under $1244) Stamp collection 6 9 15 2 2 19 (10,000) 1 2 17 12 20 19 (5,000)

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IV  Ordinary, Capital,   51231 Assets 1  Determine the amount and character of gain (loss recognized from the following asset sales by a proprietorship  Amounts are in thousands Asset 51231 25  Gain (Loss) Total Depreciation Adjusted Basis Cost Sales Price Ordinary Equipment $25 $12 $18 $7 $30 Equipment $200 $158 S42 Equipment $50 $20 $30 $45 $15 Warehouse $500 $125 $375 $450 $75 Apartment Building $500 $90 $410 $600 $190 2  Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following investments during the year  Classify each gain or loss into its correct basket using the following labels ST  28  LT  25  LT 0 15 20  LT  or ORDINARY (not a capital gain(loss)) Purchase Date 3 18 16 INVESTMENT Land held for investment Sale Date 9 6 19 Taxable Gain (Loss) $(21,000) BASKET Apple common stock 5 8 17 8 4 19 16,000 Vanguard Mutual Fund 9 15 18 6 18 19 4,000 8 2 11 6 5 19 50,000 ABC stock (qualifies under 51202) SBC stock (qualifies under $1244) Stamp collection 6 9 15 2 2 19 (10,000) 1 2 17 12 20 19 (5,000)

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IV. Ordinary, Capital, & 51231 Assets 1. Determine the amount and character of gain (loss recognized from the following asset sales by a proprietorship. Amounts

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