Question
The Lexington Partnership has a depreciable business asset (personal property) that it originally purchased for $126,600. The asset now has an adjusted basis of $75,960
The Lexington Partnership has a depreciable business asset (personal property) that it originally purchased for $126,600. The asset now has an adjusted basis of $75,960 and a market value of $151,920. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership.
a.How much is Lexington's depreciation recapture potential?
B. How much ordinary income does Ambroz recognize when he sells this partnership interest?
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
4th edition
78025524, 978-0078025525
