Required information

[The following information applies to the questions displayed below.]

Buckley, an individual, began business two years ago and has never sold a 1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets:

Asset	Accumulated Original Cost		Depreciation		Gain/Loss
Computers	$	6,000	$	2,000	$	(3,000)
Machinery		10,000		4,000		(2,000)
Furniture		20,000		12,000		7,000
Building		100,000		10,000		(1,000)

Assuming Buckleys marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values.)

Required:

a1. What is the amount and character of Buckleys gains or losses for the current year?

a2. Calculate Buckley's tax liability or tax savings for the year.

b1. Assume that the amount realized increased so that the building was sold at a $6,000 gain instead. What is the amount and character of Buckleys gains or losses for the current year?

b2. Calculate Buckley's tax liability or tax savings for the year.

c1. Assume that the amount realized increased so that the building was sold at a $15,000 gain instead. What is the amount and character of Buckleys gains or losses for the current year?

Description . Amount

------- -------

------- - ------

c2. Calculate Buckleys tax liability or tax savings for the year.