Section 1231 Gains and Losses, Depreciation Recapture (LO 8.7, 8.8)

William sold Section 1245 property for $25,000 in 2020. The property cost $40,000 when it was purchased 5 years ago. The depreciation claimed on the property was $21,000.

If an amount is zero, enter "0".

a. Calculate the adjusted basis of the property. $

b. Calculate the realized gain on the sale. $

c. Calculate the amount of ordinary income under Section 1245. $

d. Calculate the Section 1231 gain.

$