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Please help me fill the blanks, thank you! RECAPTURE EXERCISE 1. In 2016, XYZ Enterprises purchases equipment for $40,000. The equipment is sold in 2019

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RECAPTURE EXERCISE 1. In 2016, XYZ Enterprises purchases equipment for $40,000. The equipment is sold in 2019 after the company has taken $25,000 in depreciation. The sales price is $37,000. 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 12317 Recognized gain (loss) Ordinary income (loss) Section 1231 LTCG 2. Assume the same as #1 above except the sales price is $13,000 Recognized gain (loss) Ordinary income (loss) Section 1231 LTCG 3. Assume the same as #1 above except the sales price is $50, 000. Recognized gain (loss) Ordinary income (loss) Section 1231 LTCG 4. Assume the same facts as #3 above except the company had an unrecaptured net section 1231 loss of $6,000 in 2016. Recognized gain (loss) Ordinary income (loss) Section 1231 LTCG

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