tax

During the current year, Doug Judy sold a multi-purpose agriculture structure (original cost $80,000), held twelve years and depreciated using an accelerated method, for $90,000. The depreciation allowed was $35,000 and the straight-line depreciation would have been $31,000. Which of the following is true? a. Doug Judy has $1250 recapture of $31,000. b. Doug Judy has unrecaptured $1250 gain of $4,000. c. Doug Judy has $1231 gain of $41,000. d. Doug Judy's $1231 gain qualifies for the 15 percent capital gain rate. Jake sold equipment that it uses in its business for $80,000. Jake bought the equipment two years ago for $75,000 and has claimed $20,000 of depreciation expense. What is the amount and character of Jake's gain or loss? a. $25,000 $1231 Gain b. $20,000 ordinary income ($1245 recapture) and $5,000 $1231 gain c. $5,000 ordinary income (81245 recapture) and $20,000 $1231 gain d. $25,000 capital gain e. None of these On January 26, 2019, Charles purchased a small warehouse for $71,000 that he used to store his inventory for his business. However, the space was too small, so he sold the warehouse on October 22, 2019, for $75,000. For 2019, he took a depreciation deduction of $1,215 on the warehouse. What is the amount and character of the gain that Charles has on the sale of the warehouse used in his business? a. $4,000 ordinary income b. $5,215 ordinary income c. $4,000 capital gain and $1.215 ordinary income d. $5,215 capital gain