tor Problem 17-36 (LO. 1) Heron Company purchases commercial realty on November 13, 1999, for $650,0o0. Straight-line depreciation of $287,492 is claimed before the property is sold on February 23, 2018, for $850,000. What are the tax consequences of the sale of realty if Heron is (a) a C corporation a a. If Heron is a C corporation, what is the amount of each type of gain recognized? If an amount is zero, enter "O". Round your answers to the nearest dollar. Character of Gain Ordinary income under $ 1250 Ordinary income under 5 291 1231 gain Total recognized gain 57,498.40 x 57,498.40X 429,993.60 X 487,492 In general, the recapture rules under Sections 1245 and 1250 are equally applicable to both individual and corporate taxpayers. However, corporations may have more depreciation recapture (ordinary income) on the disposition of 1250 property than individuals. Check My Work Previous Next All work saved. Save and Exit Submit Assignment for Grading eBook Calculator If an amount is zero, enter "0". Round your answers to the nearest dollar Character of Gain Ordinary income under $ 1250 Ordinary income under $ 291 5 1231 gain Total recognized gain 57,498.40 X 57,498.40 X 429,993.60 x 487,492 In general, the recapture rules under Sections 1245 and 1250 are equally applicable to both Individual and corporate taxpayers. However, corporations may have more depreciation recapture (ordinary income) on the disposition of $ 1250 property than individuals. of the sale of realty are not subject to 291. The entire gain is b. If Heron is a sole proprietorship,then the tax treated as 5 1231 gain. uences Previous Next Check My Wok Save and Exit