Q3-4

In 2019, Olive's Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A) for $1,000,000. Olive's owned Equipment A for more than a year and depreciation deductions totaled $600,000. Assume Olive's sold Equipment A for $1,150,000 in 2022, and Olive's paid $50,000 in selling expenses. What is Olive's realized gain or loss on the sale of Equipment A? Instead, if Olive's sold Equipment A for $200,000 and did not pay any selling expenses, what is Olive's realized gain or loss on the sale of Equipment A ? Fergie bought a used car from her employer, Folsom Lake Toyota, for $20,000. The fair market value of the car is $22,000. Several years later, Fergie sold the car for $25,000. What amount of gain/loss does Fergie realize on the sale of the car? What are the other tax consequences Fergie experiences as a result of the facts outlined above