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[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
[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: Accumulated Asset 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 Buckley's 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: 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 Buckley's gains or losses for the current year? c2. Calculate Buckley's tax liability or tax savings for the year. Complete this question by entering your answers in the tabs below. Show less Req c1 Req c2 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 Buckley's gains or losses for the current year? Description won Amount
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