Required Information [The following information applies to the questions displayed below.] Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. (Do not round Intermediate computations.) a. Moab Inc sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19.200 three years ago and has taken $8.000 in depreciation. b. Moab Inc held stock In ABC Corp.. which had a value of $12.000 at the beginning of the year. That same stock had a value of $15.230 at the end of the year. c. Moab Inc. sold some of its Inventory for $7,000 cash. This Inventory had a basis of $5,000. d. Moab Inc, disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55.000 and $20,000 in cash. It originally bought the office building seven years ago for $62.000 and has taken $15,000 in depreciation. e. Moab Inc. sold some land held for investment for $28,000. It originally bought the land for $32,000 two years ago. f. Moab Inc sold another machine for a note payable in four annual Installments of $12,000. The first payment was recelved in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9.000 in depreciation expense against the machine. 9. Moab Inc. sold stock it held for eight years for $2,750. It originally purchased the stock for $2100. h. Moab Inc sold another machine for $7.300. It originally purchased this machine six months ago for $9.000 and has claimed $830 in depreciation expense against the asset 3. Complete Moab Inc.'s Form 4797 for the year. Answer is complete but not entirely correct. 4797 Page 1 4797 Page 2 Form Sales of Business Property OMB No. 1545-0184 4797 (Also involuntary Conversions and Recapture Amounts 2019 Department of the Treasury Under Sections 179 and 280F(b)(2)) Internal Revenue Service Attach to your tax return. Attachment Sequence No. 27 Go to www.lrs.gowForm 4797 for instructions and the latest information Name's shown on ratum Identifying number (Entor at XX-XXXXXXX) Moab Inc 1 Enter the gross proceeds from sales or exchanges reported to you for 2019 on Farm(s) 1099-B or 1099-5 for substitute statement that you are including online 2. 10. 20. so instructions 0 Partl Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft-Most Property Held More Than 1 Year (see instructions) (a) Depreciation (1) Cost or other (9) Gain or loss) (a) Description of (b) Date acquired (c) Date sold (d) Gros Sales alowed or basis, plus Subtract from property (mo, day. y. imo, day, y.) prica alowable since improvements and the sum of (d) and acquisition expense of sale 0 0 0 0 0 0 0 0 0 0 0 0 0 0 07 3 Gain, if any, from Fam 4684, Ine 39 0 4 Section 1231 gain from instalment sales from Fam 6252, line 26 or 37 0X 5 Section 1231 gain or loss) from lika-kind exchanges from Form 8824 0 6 Gain, if any, from line 32, from other than casualty or theft 7 Combine lines 2 through 6. Enter the gain or loss here and on the appropriate line as follows Partnerships and corporations. Report the gain or loss) following the instructions for Form 1065 Schedule K, line 10, or Form 1120-s, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below. 2 lololo 3 5 5 7 Individuals, partners, corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is again and you didn't have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your retum and skip lines 8, 9, 11, and 12 below. B & Nonrecaptured net section 1231 losses from prior years. See instructions. Subtract line 8 from line 7. If zero or less, enter-O. If line 9 is zero, enter the gain from ine 7 on line 12 below. If line 9 is more than zero, enter the amount from ine 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions 0 Part II Ordinary Gains and Losses (see instructions) 10 Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less Machinery 2020 2020 7.300 830 9,000 (870) 0 0 0 0 0 0 08 0 % (870) 11 Loss, if any, from ine 7 Enter as negative 11 12 Gain, if any, from line 7 or amount from line 8, if applicable 12 13 Gain, if any, from line 31 13 14 Net gain or loss from Form 4684lines 31 and 38a 14 15 Ordinary gain from installment sales from Form 6252, line 25 ar 36 15 16 Ordinary gain or loss) from like-kind exchanges from Form 8824 16 17 Combine lines 10 through 16 17 18 For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines and below. For individual returns, complete lines and below. a If the loss on line 11 includes a loss from Form 4584, line 35,column (bX), enter that part of the loss here. Enter the loss from income producing property on Schedule A Form 1040 or Form 1040-SR), Ine 16. (Do not include any loss on property used as an employee. Identity from "Form 4797, line 182.See instructions 18a Redetermine the gain or loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040 or Form 1040- 18b SR), Part Iine 4 For Paperwork Reduction Act Notice, Geeceparate Instructions. Cat No. 130861 THIB FORMA SIMULATION OF AN OFFICIAL U. TAX FORM IT IS NOT THE OFFICIAL FORMIT SELF. DO NOT U BE THIS FORM 0 0 % Form 4707 (2010) Required information 4797 Page 1 4797 Page 2 Page 2 of Form 4797. Page 2 Form 4797 2019) Part III Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions) b) Date 19 (a) Description of section 1245, 1250, 1252, 1254, ar 1255 property acquired ( A Machinery 2017 B (c) Date sold (y) 2020 C D XXX 23 24 These columns relate to the properties on lines 19A through 190 Property Property Property A B Property C 20 Gross sales price (Note: See ine 1 before completing. 20 0 % 21 Cost or other basis plus expense of a 21 22 Depreciation (ar depiction) allowed or alowable 22 23 Adjusted basis. Subtract line 22 from line 21 24 Total asin Subtract line 23 from line 20 25 If section 1245 property a Depreciation allowed or alowable from ine 22 25a Enter the smaller of line 24 or 25 25 26 If section 1250 property: It straight line depreciation was used anter -- on line 269, except for a corporation subject to section 291 a Additional depreciation after 1975. so instructions 25a 0 0 0 0 Applicable percentage multiplied by the smaller afine 24 or line 26A See Instructions 26b 0 0 c Subtract line 25 from line 24. If residential rental property ar line 24 isn't more than line 26a, skip Ines 26 and 260 260 0 0 0 d Additional depreciation after 1969 and before 1976 26d 0 0 e Enter the smaller of line 26c or 250 250 0 0 + Section 291 amount (corporations only! 251 0 0 9 Add lines 265, 26, and 26 269 27 if section 1252 property: Skip this section you didn't dispose of farmland or if this form is being completed for a partnership a Sol, water, and land clearing expenses 27a 0 0 0 Line 27a multiplied by applicable percentage. See instructions 27b 0 c Enter the smaller of line 24 ar 270 270 0 28 it section 1254 property a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion. See instructions 28a 0 Enter the smaler of line 24 or 28a 285 0 29 If section 1255 property a Applicable percentage of payments excluded from income under section 126. See instructions 29a 0 10 10 Enter the smaller of line 24 or 29a. See Instructions 295 0 0 10 Summary of Part III Gains. Complete property columns Athrough through line 296 before going to line 30. 30 Total gains for al properties. Add property columns A through Dine 24 30 31 Add property columns A through lines 25, 26, 27, 28, and 29. Enter here and on line 13 31 32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, in 33. Enter the portion from other than casualty or that on Form 4797 line 6 32 Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions) (a) Section (5) Section 179 280F(X2) 33 Section 179 expense deduction or depreciation alowable in prior years 33 0 0 34 Recomputed depreciation. See instructions 34 0 35 Recapture amount Subtractine 34 from line 33. See the instructions for where to report 35 0 0 UYA Form 4787 (2010) Sll SIS SISI SIS olo