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Yett Corporation purchased residential real estate several years ago for $315,000, of which $75,000 was allocated to the land and $240.000 was allocated to the

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Yett Corporation purchased residential real estate several years ago for $315,000, of which $75,000 was allocated to the land and $240.000 was allocated to the building Yett took straight-line MACRS deductions of $60,000 during the years it held the property. In the current year, Yett sells the property for $395,000, of which $115,000 is allocated to the land and $280,000 is allocated to the building. Requirement What are the amount and character of Yett's recognized gain or loss on the sale? Land Building Total Amount of gain Sales price $ Minus Adjusted basis 115,000 $ (75,000) 40,000 $ 280,000 $ 305,000 (180,000) (255,000) 100,000 $ 140,000 $ Recognized gain Next, determine the character of the gain or loss on sale of the land and building (Complete all answer boxes. For items with a $0 balance, make sure to enter"0" in the appropriate coll) Land Building Total Character of gain Ordinary income (loss) 0 23000 23,000 Sec 1231 gain/loss Recognized gain or loss Choose from any list or enter any number in the input fields and then click Check Answer Yett Corporation purchased residential real estate several years ago for $315,000, of which $75,000 was allocated to the land and $240.000 was allocated to the building Yett took straight-line MACRS deductions of $60,000 during the years it held the property. In the current year, Yett sells the property for $395,000, of which $115,000 is allocated to the land and $280,000 is allocated to the building. Requirement What are the amount and character of Yett's recognized gain or loss on the sale? Land Building Total Amount of gain Sales price $ Minus Adjusted basis 115,000 $ (75,000) 40,000 $ 280,000 $ 305,000 (180,000) (255,000) 100,000 $ 140,000 $ Recognized gain Next, determine the character of the gain or loss on sale of the land and building (Complete all answer boxes. For items with a $0 balance, make sure to enter"0" in the appropriate coll) Land Building Total Character of gain Ordinary income (loss) 0 23000 23,000 Sec 1231 gain/loss Recognized gain or loss Choose from any list or enter any number in the input fields and then click Check

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