Question
The chart below describes the 1231 assets sold by the Ruff-n-Ready Company (a sole proprietorship) this year. Compute the gain or loss from each asset
The chart below describes the 1231 assets sold by the Ruff-n-Ready Company (a sole proprietorship) this year. Compute the gain or loss from each asset disposition and determine the net 1231 gain treated as long-term capital gain for the year and the ordinary gain due to 1245 recapture and the lookback loss provision. Assume there is a 1231 lookback loss of $5,000
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| Acquired | Sold | Cost | Depreciation | Sale Price Asset |
|
| 3/10/07 | 8/10/2018 | $60,000 | $49,900 | $34,000 Machine |
| Pres | 2/12/04 | 7/23/2018 | 78,000 | 10,000 | 98,000 Press |
| Trac | 5/16/06 | 11/13/2018 | 57,050 | 57,050 | 40,000 Tractor |
| Over | 11/12/00 | 2/25/2018 | 69,000 | 69,000 | 19,000 Crane |
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