Note: CY = 2019

1. Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 30 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem):
   1. What is the amount and character of Harts recognized gain if the asset is tangible personal property sold for $450,000? What effect does the sale have on Harts tax liability for the year?
   2. What is the amount and character of Harts recognized gain if the asset is tangible personal property sold for $550,000? What effect does the sale have on Harts tax liability for the year
   3. What is the amount and character of Harts recognized gain if the asset is tangible personal property sold for $350,000? What effect does the sale have on Harts tax liability for the year?
   4. What is the amount and character of Harts recognized gain if the asset is a non-residential building sold for $450,000? What effect does the sale have on Harts tax liability for the year?