Problem 17 37 (LO 2, 3) Amber Industries (a sole proprietorship) sold three 1231 assets during 2018 Data on these property dispositions are as follows Asset Cost Acquired Depreciation Sold For Sold On Rack $100,000 10 10 14 $100,000 $145,000 10 10 18 Forklift 35,000 10 16 15 23,000 3,000 10 10 18 Bin 87,000 03 12 17 31,000 60,000 10 10 18 a Determine the amount and the character of the recognized gain or loss from the disposition of each asset If an amount is zero, enter 0 Asset Character of Gain or Loss Total Amount of Gain or Loss Amount of 1245 Recapture Balance of Gain or Loss Rack Ordinary income and 1231 gain Forklift 1231 loss Bin Ordinary income Amber has $ of ordinary income due to 1245 recapture Additionally, she has $ of net 1231 gain Feedback b Assuming that Amber has $5,000 nonrecaptured net 1231 losses from the five prior years, analyze these transactions and determine the amount (if any) that will be treated as a long term capital gain $

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Problem 17-37 (LO. 2, 3) Amber Industries (a sole proprietorship) sold three 1231 assets during 2018. Data on these property dispositions are as follows: Asset

Problem 17-37 (LO. 2, 3)

Amber Industries (a sole proprietorship) sold three 1231 assets during 2018. Data on these property dispositions are as follows:

Asset	Cost	Acquired	Depreciation	Sold For	Sold On
Rack	$100,000	10/10/14	$100,000	$145,000	10/10/18
Forklift	35,000	10/16/15	23,000	3,000	10/10/18
Bin	87,000	03/12/17	31,000	60,000	10/10/18

a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter 0.

Asset	Character of Gain or Loss	Total Amount of Gain or Loss	Amount of 1245 Recapture	Balance of Gain or Loss
Rack	Ordinary income and 1231 gain
Forklift	1231 loss
Bin	Ordinary income

Amber has $ of ordinary income due to 1245 recapture. Additionally, she has $ of net 1231 gain .

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b. Assuming that Amber has $5,000 nonrecaptured net 1231 losses from the five prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. $