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Problem 8-16 (Algorithmic) Calculation of Gain or Loss, Section 1231 Gains and Losses (LO 8.7, 8.8) Frank Willingham has the following transactions during the year:

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Problem 8-16 (Algorithmic) Calculation of Gain or Loss, Section 1231 Gains and Losses (LO 8.7, 8.8) Frank Willingham has the following transactions during the year: 1. Sale of office equipment on March 15 that cost $65,000 when purchased on July 1, 2016. Frank has claimed $13,000 in depreciation and sells the asset for $39,000 with no selling costs. 2. Sale of land on April 19 for $189,600. The land cost $208,560 when purchased on February 1, 2007. Frank's selling costs are $37,920. Assume there were no capital improvements on either business asset sold. Frank's Social Security number is 924-56-5783. Complete Form 4797 to report the above gains or losses. Enter all amounts as positive numbers except for a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount is zero, enter "O". Form 4797 Sales of Business Property OMB No. 1545-0184 (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b) Department of the (2)) 2018 Treasury Internal Attach to your tax return. Attachment Revenue Service Go to www.irs.gov/Form 4797 for instructions and the latest Information. Sequence No. 27 Name(s) shown on return Identifying number Frank Willingham 924-56-5783 1 Enter the gross proceeds from sales or exchanges reported to you for 2018 on Form(s) 1099-B or 1099-5 (or substitute statement) that you are including on line 2, 10, or 20. See instructions... Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft-Most Property Held More Than 1 Year (see instructions) (b) Date (e) Depreciation Cost or other basis, (e) Gain or loss) (c) Date sold (d) Gross sales from the Allowed or allowable Lols.imvements and Subtract 2 Description acouired mo. Previous Check My Work Omore Check My Work uses remaining Sussen for

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