Please answer all parts of question number 5, type your response and provide an explanation

please include all irs code citations

5) Business taxpayers sold all the depreciable assets of the business on January I, 2018

calculate the gains and losses, and the final character of those gains and losses. The taxpayer

had unrecaptured 1231 lookback loss of$l2,000. What is the treatment of the gains and

losses summarized in the Chan below after all possible netting and reclassification has been

completed? (Page 6-35 for depreciation rates)

You must complete the chart below by: a) Calculating depreciation b) Computing basis after

depreciation c) determining character of gain or loss (e.g. 1245, 1250, 123 l) on each asset

sale d) determine overall character of the gain or loss on the sale of the four assets (i.e

ordinary or 123 l )?

Asset Sale Proceeds Purchase Date Cost Depreciation

#I $565.904 10/ I 0/ 16 $832.904 A?

#2 47.953 10/02/15 127.953 B ?

23.000 l 1/23/05 C ?

I 1/23/05 28.000 D ?

A) VI year convention and no bonus-7 year property

B) % year convention and no bonus-7 year property

C) Bonus Depreciation taken-7 year property

D) Bonus Depreciation taken-7 year property

Business taxpayers sold all the depreciable assets of the business on January 1, 2018, calculate the gains and losses, and the final character of those gains and losses. The taxpayer had unrecaptured S 1231 lookback loss of S12,000. What is the treatment of the gains and losses summarized in the chart below after all possible netting and reclassification has been completed? (Page 6-35 for depreciation rates) 5) You must complete the chart below by: a) Calculating depreciation b) Computing basis after depreciation c) determining character of gain or loss (e.g. 1245, 1250, 1231) on each asset sale d) determine overall character of the gain or loss on the sale of the four assets (i.e ordinary or 1231)? Asset #1 #2 #3 #4 Sale ProceedsPurchase Date Cost Depreciation $565,904 47,953 23,000 64,000 10/10/16 10/02/15 11/23/05 11/23/05 $832,904 127,953 183,000 28,000 A? B ? C? D ? A) B) C) D) year convention and no bonus-7 year property year convention and no bonus-7 year property Bonus Depreciation taken-7 year property Bonus Depreciation taken-7 year property Business taxpayers sold all the depreciable assets of the business on January 1, 2018, calculate the gains and losses, and the final character of those gains and losses. The taxpayer had unrecaptured S 1231 lookback loss of S12,000. What is the treatment of the gains and losses summarized in the chart below after all possible netting and reclassification has been completed? (Page 6-35 for depreciation rates) 5) You must complete the chart below by: a) Calculating depreciation b) Computing basis after depreciation c) determining character of gain or loss (e.g. 1245, 1250, 1231) on each asset sale d) determine overall character of the gain or loss on the sale of the four assets (i.e ordinary or 1231)? Asset #1 #2 #3 #4 Sale ProceedsPurchase Date Cost Depreciation $565,904 47,953 23,000 64,000 10/10/16 10/02/15 11/23/05 11/23/05 $832,904 127,953 183,000 28,000 A? B ? C? D ? A) B) C) D) year convention and no bonus-7 year property year convention and no bonus-7 year property Bonus Depreciation taken-7 year property Bonus Depreciation taken-7 year property