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Required information

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Hart, an individual, bought an asset for $$500,000$ and has claimed $$100,000$ of depreciation deductions against the asset Hart has a marginal tax rate of $32$ percent.

Answer the questions presented in the following alternative scenarios $($assume Hart had no property transactions other than those described in the problem$)$:

Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers blank. Enter zero if applicable.

Required:

e$1.$ Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $$450,000?$

e$2.$ What effect does the sale have on Hart's tax liability for the year $($assume a $21$ percent tax rate$)?$

Complete this question by entering your answers in the tabs below.

Required e$1$

Required e$2$

What effect does the sale have on Hart's tax liability for the year $($assume a $21$ percent tax rate$)?$

Tax liability

$$,94,500$