Problem 8-18 Calculation of Gain or Loss, Section 1231 Gains and Losses (LO 8.7, 8.8)

Nadia Shalom has the following transactions during the year:

• Sale of office equipment on March 15 that cost $21,500 when purchased on July 1, 2020. Nadia has claimed $21,500 in depreciation and sells the asset for $13,500 with no selling costs.
• Sale of land on April 19 for $121,000. The land cost $128,000 when purchased on February 1, 2011. Nadia's selling costs are $4,700.
• Sale of an office building on April 19 for $250,000. The building cost $230,000 when purchased on February 1, 2011, and Nadia has claimed $62,500 in depreciation. Nadia pays a sales commission of $12,500.
• Assume there were no capital improvements on either business asset sold. Nadias Social Security number is 924-56-5783.

Complete Form 4797 to report the above gains or losses.

Enter all amounts as positive numbers unless there is a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount is zero, enter "0".

Form 4797