Prepare Form 4797 for Lionel Jackson, SSN 643-00-5789. Lionel owns an equipment repair business. Lionel is a sole proprietor who files Schedule C with his individual return.

Lionel sold his equipment and building during the tax year. The details needed to complete Form 4797 are as follows:

Property Type Date of Purchase/Sale

Purchase:

Equipment 08/15/2020 Building/Land 09/01/2020

Sale:

Equipment 09/15/2022 Building/Land 09/15/2022

Purchase/Sale Price

$20,000 $50,000 ($40,000 building + $10,000 land)

$16,500 $60,000 ($48,000 building + $12,000 land)

Helpful Note:When using tax software to determine depreciation compared to computing depreciation by hand using the depreciation tables, small differences in the amount of depreciation may occur due to rounding by the tax software. This could affect the total amount of gain or loss on the sale of the building and equipment.

Use the following table to calculate the depreciation for the equipment:

Use the following table to calculate the depreciation for the building:

Property	Cost	Year Depreciated	% of Depreciation	Depreciation Allowed
Equipment	$20,000	2020	14.29%
		2021	24.49%
		2022	17.49%

Property	Cost	Year Depreciated	% of Depreciation	Depreciation Allowed
Building	$40,000	2020	0.749%
		2021	2.564%
		2022	2.564%

Answer the following question based on the information listed.. What is the amount of gain or loss on the sale of the building and equipment?

a) $16,057

b) $ 6,005

c) $10,052

d) $10,495