Problem 8-39 (LO. 6, 7) On June 1, 2019, Skylark Enterprises (a calendar year LLC reporting as a sole proprietorship) acquired a retail store building for $500,000 (with $100,000 being allocated to the land). The store building was 39-year real property, and the straight-line cost recovery method was used. The property was sold on June 21, 2023, for $385,000. Click here to access EXHIBIT 5.6 MACRS Straight-Line Depreciation for Real Property. Carry all cost recovery rates out to five decimal places. Round the total cost recovery deduction to the nearest dollar. a. Compute the cost recovery and adjusted basis for the building. Total cost recovery is $ " and the adjusted basis for the building is $ b. What are the amount and nature of Skylark's gain or loss from disposition of the property? What amount, if any, of the gain is unrecaptured 1250 gain? There is $ 1250 recapture. of recognized on the sale of the property, of which is subject to

On June 1, 2019, Skylark Enterprises (a calendar year LLC reporting as a sole proprietorship) acquired a retal store building for $500,000 (with $100,000 being allocated to the land). The store building was 39 -year real property, and the stralght-line cost recovery method was used. The property was sold on June 21,2023 , for $385,000. Click here to access EXHIBIT 5.6 MACRS Straight-Line Depreciation for Real Property. Carry all cost recovery rates out to five decimal places. Round the total cost recovery deduction to the nearest dollar. a. Compute the cost recovery and adjusted basis for the building. Total cost recovery is \$ , and the adjusted basis for the building is 1 b. What are the amount and nature of Skylark's gain or loss from disposition of the property? What amount, if any, of the gain is unrecaptured $1250 gain? There is 5 of recognized on the sale of the property, of which is subject to 5 1250 recapture