Question
Lingberg owns a farming sole proprietorship. During the year, Lingberg sold chickens that he had owned for 26 months and cattle that he had owned
Lingberg owns a farming sole proprietorship. During the year, Lingberg sold chickens that he had owned for 26 months and cattle that he had owned for 48 months. The chickens had an adjusted basis of $4,200 and were sold for $5,800. The cattle had an adjusted basis of $56,000 and were sold for $73,000. Lingberg also has a $5,000 long-term capital loss from the sale of land. He has $62,000 of other AGI (not associated with the items above) for the year. He has $1,000 nonrecaptured 1231 losses from the previous five years.
The sale of the chickens results in an ordinary gain of $fill in the blank 2. The sale of the cattle results in an overall of $fill in the blank 4. Due to , $fill in the blank 6 of the amount is reclassified as . Therefore, Lindberg's AGI for the year is $fill in the blank 8
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